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please answer the questions Ivanhoe Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an

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Ivanhoe Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $11.85 million. This investment will consist of $2.15 million for land and $9.70 million for trucks and other equipment. The tand, all trucks, and all other equipment are expected to be sold at the end of 10 years for a price of $5.25 million, which is $2.00 million above book value. The farm is expected to produce revenue of $2.10 million each year, and annual cash flow from operations equals $1.90 million. The marginal tax rate is 25 percent, and the appropriate discount rate is 10 percent. Calculate the NPV of this investment. (Do not round factor values. Round final answer to 2 decimal places, es. 5,275.25.J NPV The project should be Sunland Lumber, Inc, is considering purchasing a new wood saw that costs $55,000. The saw will generate revenues of $100,000 per year for five years. The cost of materials and labor needed to generate these revenues will total $60,000 per year, and other cash expenses will be $10,000 per year. The machine is expected to sell for $1,100 at the end of its five-year life and will be depreciated on a straight-line basis over five years to zero. Sunland's tax rate is 26 percent, and its opportunity cost of capital is 17.90 percent. What is the project's NPV? (Do not round intermediate calculations. Round final onswer to O decimal ploces, eg. 5,275.) NPY Should the company purchase the saw? Thiceompiny the saw

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