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You are given the following information: + $140 $1,400 100 150 Cash rent Land price Acres Yield (bu acre) Price ($/bu) Gov payments ($/acre) Revenues

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You are given the following information: + $140 $1,400 100 150 Cash rent Land price Acres Yield (bu acre) Price ($/bu) Gov payments ($/acre) Revenues ($/acre) Operating costs ($/acre) Loan information Land price Down payment Loan value Years Annual interest rate Annual loan payment $4.00 $140,000 $7,000 133,000 30 5.00% $8,600 $20 $400 Growth rate Discount rate Marginal tax rate 0.0% 10% 25% Please fill in the following table. Land is purchased with a loan. Year Revenues Net after tax cash flow Operating costs Land is purchased with a loan Loan Interest Taxes payments $0 0 1 $6,600

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