You are considering the purchase of land for $20 Million. You expect significant residential growth to reach the area within the next 10 years, lifting the value of your property. You purchase the land now and lease it to an individual for 10 years who will create a commuter parking lot together with a bus into the heart of the city and then sell you the land after 10 years for an estimated $50 million after-tax.

You estimate you can lease the land to the individual for $1 million before tax for the first year, with an escalation of 3% per year. You will also face property tax expense of $0.1 million for the first year which you estimate will increase 3% per year. You will be able to deduct the property tax from your lease revenue for tax purposes. Assume the first lease and property tax payments occur at the end of year 1.

Tax rate is 25% and Discount Rate is 10%

What is the Net Present Value (NPV) and (end of year 0) of purchasing the land, leasing it and selling it after 10 years per the estimated factors above?