You are given the following information: Loan information Cash rent($/acre) $200 Land price $333,333 Land price(S/acre) $3,333 Down payment $100,000 Acres 100 Loan value 200,000 Yield (bu/acre) 140 Years 40 Price ($/bu) $4.00 Annual interest rate 8.00% Gov payments ($/acre) $10 Annual payment $20,726 Revenues (S/acre) Operating costs ($/acre) $500 Growth rate 3% Discount rate 8% Marginal tax rate 25% Fill in the following table for the case where land is purchased. Total Total Loan Interest Revenue Operating payment payment Principal payment Remaining Taxes Loan Net after tax cash flow costs Balance 1 2
You are given the following information: Loan information Cash rent($/acre) $200 Land price $333,333 Land price(S/acre) $3,333 Down payment $100,000 Acres 100 Loan value 200,000 Yield (bu/acre) 140 Years 40 Price ($/bu) $4.00 Annual interest rate 8.00% Gov payments ($/acre) $10 Annual payment $20,726 Revenues (S/acre) Operating costs ($/acre) $500 Growth rate 3% Discount rate 8% Marginal tax rate 25% Fill in the following table for the case where land is purchased. Total Total Loan Interest Revenue Operating payment payment Principal payment Remaining Taxes Loan Net after tax cash flow costs Balance 1 2
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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