In order to improve the stability of his farm income, a farmer in Eastern Wyoming is considering working with a wind energy developer to build turbines on his land. Each turbine will increase the farmer's net revenue by $3,500 annually. He wants to host 30 turbines. The risk-free pre-tax discount rate is 8% and there is a risk premium of 4%. Inflation is 1.5% and the marginal tax rate is 20%. What is the present value of after-tax net returns over 6 years? $379,433 $408,115 O $388,554 $355,488 O None of the answers are correct

In order to improve the stability of his farm income, a farmer in Eastern Wyoming is considering working with a wind energy developer to build turbines on his land. Each turbine will increase the farmer's net revenue by $3,500 annually. He wants to host 30 turbines. The risk-free pre-tax discount rate is 8% and there is a risk premium of 4%. Inflation is 1.5% and the marginal tax rate is 20%. What is the present value of after-tax net returns over 6 years? $379,433 $408,115 O $388,554 $355,488 O None of the answers are correct

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter13: Investing In Mutual Funds, Etfs, And Real Estate

Section: Chapter Questions

Problem 9FPE

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