What is the per acre present value of this lease arrangement

Assignment Help Financial Management

Reference no: EM131969261

You lease out your land to a hunting club. The club has agreed to sign a long-term lease with you for 50 years. The terms of the lease requires the club to make ten payments of $100 for every acre leased.

The 1st payment is made immediately, with the remaining nine payments made every five years starting in five years.

What is the per acre present value of this lease arrangement if your opportunity cost of this lease is 8 percent?

Reference no: EM131969261

Questions Cloud

What are the ranges in demand : Completed cases can be sold with a selling price of $220 per case. What are the ranges in demand for which each location will be most economical?

Find the present value of this stream of lease payments : The lease on a new office requires an immediate payment of $24,000 (in year 0) plus $24,000 per year at the end of each of the next 10 years.

How much of headquarter cost allocation should dallas expect : How much of the headquarters cost allocation should Dallas expect to receive next year?

What can we expect from old age : What about the transitions in family life, i.e., marriage and parenthood? What can we expect from old age?

What is the per acre present value of this lease arrangement : What is the per acre present value of this lease arrangement if your opportunity cost of this lease is 8 percent?

Prepare a memo explaining what the terms debit-credit mean : Prepare a memo explaining what the terms debit and credit mean in recording transaction. Support your explaination with examples.

Which member of the audit engagement team has responsibility : Which member of the audit engagement team has the primary responsibility to ensure that such issues are properly resolved and documented in the audit papers?

Detract from the contract negotiating process : How do you imagine project management might aid or detract from the contract negotiating process

What are the net proceeds to the firm : Raybac is about to go public. Its present stockholders own 450,000 shares. The new public issue will represent 830,000. What are the net proceeds to the firm?

User Account

All Pages