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You have a chance to buy a plot of rice land that is offered for sale for $ 5 0 0 0 / acre. You
You have a chance to buy a plot of rice land that is offered for sale for $ acre. You expect the annual NET returns revenue minus costs from rice production to be $acre in Year the NET returns will grow slightly faster than inflation over time per year...so the net return in Year would be $ inflation of you will own the land for years before selling it the value of the land for resale will grow at the same rate as inflation annual growth
What is the resale value of the land per acre in Year
What is the NPV of the investment if you add a risk premium this assumes rice prices may be inconsistent, weather issues could arise, etc.
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