Quiz ne Sam and Samantha have always wanted to buy a farm and grow organic cabbage. They have located a 100-acre piece of prime farmland that cost $2,000 per acre that they are considering purchasing. In order to get started farming, Sam and Samantha will need to pay $150,000 for farm equipment. If purchased, the farm equipment will be depreciated on a straight-line basis over 20 years. 10 19 Prior to making the final decision on purchasing the farm, Sam and Samantha decided to attend a seminar on farming fundamentals that is being offered by a local community college. The seminar cost them $500 each. Finish Time Sam and Samantha figure that the annual revenue of the farm will be $200,000 and they estimate the annual operating expense, including salaries of Sam and Samantha, will be $150,000. Sam and Samantha believe that at the end of 20 years, they will want to sell their farm and retire to Florida. The land is expected to appreciate in value at a rate of 5 percent per year and Sam and Samantha expect to be able to sell the farm equipment for $30,000 at the end of the 20-year period. The couple's marginal tax rate is 25 and they estimate their cost of capital to be 16%. Answer the following questions regarding Sam and Samantha's proposed farm project. What is the expected the net initial investment (NINV) needed to begin the farm project? What is the expected depreciation for the first year (Year 1) of the farm project? The couples marginal tax rate is 25 and they estimate their cost of capital to be 16%. Answer the following questions regarding Sam and Samantha's proposed farm project. What is the expected the net initial investment (NIV) needed to begin the form project? What is the expected depreciation for the first year (Year of the farm project? What is the expected net operating cash flow for the first year (Year 1) of the farm project? What is the expected net after-tax cash flow expected from the sale of the land at the end of the final year of the farm project (Year 2017 What is the expected tax on the sale of the equipment at the end of the final year of the farm project (Year 20)? What is the expected total net cash flow for the final year of the farm project (Year 2017 Finish attempt Grevious page