A farmer discovers a natural gas reserve on his property. He can extract the natural gas for a profit of $20 per unit now, $25 per unit in one year, $30 per unit in two years, and $35 in three years. The current market rate of interest is 6 percent. When should the farmer extract the natural gas to obtain the most profit per unit in present value terms? Multiple Choice   three years   today   one year   two years

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Q: determine the value of the firm

A:

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