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Pharoah Company is considering buying a new farm that it plans to operate for 1 0 years. The farm will require an initial investment of
Pharoah Company is considering buying a new farm that it plans to operate for years. The farm will require an initial investment of $ million. This investment will consist of $ million for land and $ million for trucks and other equipment. The land, all trucks, and all other equipment are expected to be sold at the end of years for a price of $ million, which is $ million above book value. The farm is expected to produce revenue of $ million each year, and annual cash flow from operations equals $ million. The marginal tax rate is percent, and the appropriate discount rate is percentCalculate the NPV of this investmentDo not round factor values Round final answer to decimal placeseg NPV
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