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You are considering converting your land into a vineyard. It costs $300,000 to plant the vines. It will take 6 years to begin producing revenue,
You are considering converting your land into a vineyard. It costs $300,000 to plant the vines. It will take 6 years to begin producing revenue, but once it does you will produce $60,000 worth of wine every year forever (i.e. it's a perpetuity and the first cash flow is 6 years from today). If your discount rate is 10%, what is the NPV of this investment?
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