Phil Farmer just sold his farm to his nephew. The terms of the sale are that the

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Phil Farmer just sold his farm to his nephew. The terms of the sale are that the nephew will pay Phil $

400 /

acre each year for the next

35

years.

What is the equivalent sales price

(

/

acre

)

that Phil is receiving for his land, given in todays dollars, if his discount rate is

3 % ?

Explain your answer, including any TVM formulas.

Posted Date: May 11, 2024 05:25 AM

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Phil Farmer just sold his farm to his nephew. The terms of the sale are that the

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