Determine the cash flows, the NPV, the IRR and the MIRR. ...

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Accounting

Determine the cash flows, the NPV, the IRR and the MIRR.

Scenario 1 Without Debt Financing

Part A Investment Data

Number of Tillable Acres 315

Price per acre $ 3400

Closing costs per acre $ 100

Terminal value per acre $ 3000

Cash flow Data

Growth rates in receipts and expenses 2.5%

Income Tax Rate .. 30%

% Financed 0%

Interest Rate on Debt. 7.5%

Amortized over 20 yrs

Equity Rate .. 9%

Planning Horizon . 10yrs

Production History

5 year Soybean yield history........ 45bu/acre

Projected Market price/bu. ....... $8.25

Direct costs per acre $235.00

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