The family woodland property is being sold by your parents who are retiring. Your siblings and you decide to purchase property to keep it in the family. The plan is to purchase the land and make a number of investments, with the intent of generating income from timber and leasing the hunting rights. Your estimated costs and returns are as follows:

• $900/acre purchase price of land, paid back annually in equal installments over 10 years @ 6% annual interest.
• $300/acre tree planting costs incurred 1 year after purchase.
• $1000/acre wildlife habitat improvement costs 3 years after purchase.
• $50/acre forest management costs in starting 5 years after purchase and continuing until 10 years after purchase (6 years total).
• Annual hunting lease of $100/acre beginning 6 years after purchase and continuing until 15 years after purchase.
• $5/acre/year in property taxes, beginning immediately ending in the year you sell the land (17 total annual property tax payments).
• $3,000/acre income from the sale of timber 15 years after purchasing the land.
• $1,200/acre from the sale of your forest land 16 years after purchasing the land.
• Your discount rate is 4%.

What is the NPV for this project?

What is the present value of the loan payment made in year 8?

What is the net present value of revenue and costs incurred in year 10?

What is the present value of the property tax payment made in year 13?

What is the present value of the revenue generated from selling the forest land?

What is the present value of the 1st payment received for the hunting lease?

What is the present value of the revenue generated from timber harvesting?

What is the present value of the $1,000 wildlife habitat improvement cost?

What is the present value of the tree planting cost?

What is your annual payment for the loan you took out to purchase the land?