What is the return on investment for a wine grape vineyard

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Problem 1: What is the return on investment (ROI) for a wine grape vineyard with the following costs and returns:

$1,500,000 Land

$2,000,000 Establishment costs (total for 3 years to bring vineyard to productive maturity)

$3,500,000 Total investment

$ 360,000 Annual operating cost

1,000 tons Estimated average annual yield

$650 per ton price for grapes

Reference no: EM132985875

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