Calculate the per acre pv of this payment stream

Reference no: EM131933284

Problem

You have the option of selling a permanent conservation easement to the MN Board of Soil and Water Resources. Your land consists of tillable land that will be restored to wetlands and grassland once the easement is conveyed to the state. You will receive 15 annual payments of $150/acre/year (one immediately after conveying the easement; followed by 14 annual payments). One year after the last annual payment is made, you will receive a single payment of $750/acre. If the opportunity cost of your capital is 3.5%, calculate the per acre PV of this payment stream.

Reference no: EM131933284

Questions Cloud

What annual rate of return is implied on a loan : What annual rate of return is implied on a $2,500 loan taken next year when $4,125 must be repaid in year 5? (Do not round intermediate calculations).

Detremine the necessity to hire a completely new staff : Change is inevitable in every organization. In most cases not all stakeholders who support the change. Some resist a change due to different reasons.

What is the present value of the annuity : An annuity will pay an annual amount of $50,000 per year at the end of the year for the next 20 years. This is total of $1 million over the life of the annuity.

Has grey any rights against the tailor : White told his tailor to make a wedding suit for White's nephew, Grey, who chose the style and material. The cost was to be charged to White's account.

Calculate the per acre pv of this payment stream : You have the option of selling a permanent conservation easement to the MN Board of Soil and Water Resources. Calculate the per acre PV of this payment stream.

How much must andy deposit today to make good : Andy promises to pay Opie $6 comma 5006,500 when Opie graduates from Mayberry University in 1313 years. How much must Andy deposit today to make good on his.

What balances should appear in the investment in bloom bonds : What balances should appear in the Investment in Bloom Bonds account on Opus's records and the Bonds Payable account of Bloom as of December 31, 2014?

Determines the approach that a manager uses with stakeholder : What determines the approach that a manager uses with stakeholders?What approaches would be best received by stakeholders in my Industry?

How much will anna have in the account : Anna placed $8,317 in a savings account today that has an annual interest rate of 11 percent, compounded annually.

User Account

All Pages