Math 4 You inherited a huge mango garden in Rajshahi from a distantly related great grandfather. It opens two choices for you: Choice (1): Farm for mango yourself and produce mango juice. Ya will invest 300,000BDT to set it up. But at every year end you will earn 600,000BDT (after deduction of all the taxes etc...) for the ne 5 years. Choice (2): Lease out the garden to a company. It pays you o00 00ORDT at the Ru

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
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Chapter5: Gross Income: Exclusions
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Math 4
You inherited a huge mango garden in Rajshahi from a distantly
related great grandfather. It opens two choices for you:
Choice (1): Farm for mango yourself and produce mango juice. You
will invest 300,000BDT to set it up. But at every year end you will
earn 600,000BDT (after deduction of all the taxes etc...) for the next
5 years.
Choice (2): Lease out the garden to a company. It pays you
800,000BDT at the beginning of each year for the next 3 years. But
after that due to hyper production over natural limits your trees will
go barren for the next 2 years and production will become
negligible.
Which option should you choose? Assume that yearly inflation rate
is 5%.
Transcribed Image Text:Math 4 You inherited a huge mango garden in Rajshahi from a distantly related great grandfather. It opens two choices for you: Choice (1): Farm for mango yourself and produce mango juice. You will invest 300,000BDT to set it up. But at every year end you will earn 600,000BDT (after deduction of all the taxes etc...) for the next 5 years. Choice (2): Lease out the garden to a company. It pays you 800,000BDT at the beginning of each year for the next 3 years. But after that due to hyper production over natural limits your trees will go barren for the next 2 years and production will become negligible. Which option should you choose? Assume that yearly inflation rate is 5%.
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