What is the equitable present cash value of the investment

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Reference no: EM13213011

A recently developed citrus orchard will come into full bearing after 6 years. Starting at the end of the 7th year of operation and continuing through a productive life which lasts till the end of the 26th year, the orchard is expected to produce an average net income of $80,000 per year. What is the equitable present cash value of the investment if the money is worth 7% per annum. (7% per year compounded annually)?

Reference no: EM13213011

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