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You currently lease land to graze livestock. Your lease is up this year, and the landowner has offered you a 1 5 - year contract

You currently lease land to graze livestock. Your lease is up this year, and the landowner has offered you a 15-year contract to lease the land for $55.25/ac for 15 years, with the first right of refusal to buy it at the end of 15 years for $850/ac. You want to counter offer to see if the landowner is willing to sell the land to you today instead of the lease agreement. The landowner values all investments at a 6.5% interest rate. How much would you have to offer to purchase the land today for the landowner to accept your offer?
Note: This assumes the landowner is indifferent to selling today vs. selling 15 years from now.

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