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You have just been offered an opportunity to buy a working dairy farm in Iowa. The seller shows you financial statements that suggest the investment
You have just been offered an opportunity to buy a working dairy farm in Iowa. The seller shows you financial statements that suggest the investment will provide a cash flow of $80,000 per year. If you assume the farm can operate indefinitely, and you require a 12.8% return on the investment, what is the most you would be willing to pay for the farm?
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