Your friends and you decide to purchase a large tract of forest land in northern Minnesota with the intent of generating income from timber and leasing the hunting rights. Your estimated costs and returns are as follows:

$1400/acre purchase price of land, paid back in equal yearly installments over 15 years @ 7% annual interest.

$200/acre site preparation costs incurred immediately.

$250/acre tree planting costs incurred 1 year after purchase.

$100/acre forest management costs incurred 3, 4, 5, 6, and 7 years after purchase.

$50/acre forest management costs incurred 8, 9, and 10 years after purchase.

Annual hunting lease of $75/acre beginning in years 2 years after purchase and continuing until 15 years after purchase.

$7/acre annual property taxes, beginning immediately and paid each year you own the land through 15 years after purchase.

$4,500/acre income from the sale of timber 13 years after purchase.

$1,200/acre from the sale of your forest land 16 years after purchase.

Your discount rate is 5.5%.

1-What amount will you have to pay each year for the loan payment associated with purchasing the land?

2-What is the present value of all loan payments?

3-What is the present value of the last loan payment associated with purchasing the forest land?

4-What is the present value of the site preparation costs?

5- What is the present value of the tree planting costs?

6-What is the present value of the $100/acre forest management costs (all years)?

7-What is the present value of the last $50/acre forest management cost?

8-What is the present value of the last $50/acre forest management cost?

9-What is the present value of the last lease payment?

10-What is the present value of all hunting lease revenue?

11-What is the present value of the revenue generated from the timber sale?

12-What is the present value of the revenue generated from the sale of your forest land?

13-What is the present value of the property taxes (all years)?

14-What is the present value of all costs incurred in year 10?

15-What is the present value of all revenue generated in year 2?

16-What is the net present value of all costs incurred and revenue generated in year 6?