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Vince owns a apple orchard that has a cost of capital of 7.66 percent. The apple orchard is expected to produce annual cash flows of
Vince owns a apple orchard that has a cost of capital of 7.66 percent. The apple orchard is expected to produce annual cash flows of 18,047 dollars for 5 years. The first annual cash flow of 18,047 dollars is expected later today. In addition to the annual cash flows of 18,047 dollars, the apple orchard is also expected to produce a special, one-time cash flow of 40,878 dollars in 2 years from today. How much is Vinces apple orchard worth?
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