Posted by **shantelle** on Friday, August 30, 2013 at 2:36pm.

Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.00 million. This investment will consist of $2.60 million for land and $9.40 million for trucks and other equipment. The land, all trucks, and all other equipment is expected to be sold at the end of 10 years at a price of $5.18 million, $2.29 million above book value. The farm is expected to produce revenue of $2.01 million each year, and annual cash flow from operations equals $1.84 million. The marginal tax rate is 35 percent, and the appropriate discount rate is 9 percent. Calculate the NPV of this investment

## Answer This Question

## Related Questions

- Finance - Archer Daniels Midland Company is considering buying a new farm that ...
- Finance - Rock Company acquired land 8 years ago for 2.2 million. Today it is ...
- FIN - Question 2 Archer Daniels Midland Company is considering buying a new farm...
- Finance - 1. Briarcrest Condiments is a spice-making firm. Recently, it ...
- Finance - Can you show me how to solve these problems? PLEASE!!! I can't figure ...
- Finance - The company bought some land three years ago for $3.8 million in ...
- corporate finance - A company is considering a $250 million investment in land ...
- Finance - Calculate the projectâ€™s initial Time 0 cash flow, taking into account ...
- Finance - Calculate the projectâ€™s initial Time 0 cash flow, taking into account ...
- math - In 2009, there were 12 million fewer acres of farm land in Arizona than ...

More Related Questions