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You have inherited 100 acres of Iowa farmland. There is an active market in this...

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Accounting

You have inherited 100 acres of Iowa farmland. There is an active market in this type of land and other similar properties are selling for $10,000 per acre. If planted with corn, the net cash flows are expected to be $800 per acre forever. If the discount rate is 10%, how much is the land worth per acre? Calculate the Present Value (PV), Market Value, and Land value for the firm.

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