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You want to value a property by estimating the value of repeated agricultural projects on the property. A project will begin today and be complete
You want to value a property by estimating the value of repeated agricultural projects on the property. A project will begin today and be complete 3 years later, after which a new project with the same cashflows will be immediately re-initiated.
Each project has the following cash-flows:
Year | 0 | 1 | 2 | 3 |
Cash Flow | -990 | 500 | 500 | 500 |
The appropriate annual discount rate is 8%.
What is the Net Present Value of one 3-year project, starting today, assuming that there is no follow-on project (Just the NPV of the first 4 cashflows.) (0+decimals)?
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