You have inherited an apple orchard and want to sell it in the next four...
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Accounting
You have inherited an apple orchard and want to sell it in the next four years. An expert in apple orchard valuation has estimated the after-tax cash flow you would receive if you sold at the end of each of the next four years as follows: $800,000 if you sell in one year; $1,000,000 if you sell in two years; $1,200,000 if you sell in three years; and $1,200,000 if you sell in four years. Your opportunity cost of capital is 8 percent. Calculate the NPV of each alternative. (Round intermediate calculations and final answers to the nearest whole dollar, e.g. 5,275.)
NPV1 $
NPV2 $
NPV3 $
NPV4 $
When should you sell the orchard?
You should sell the orchard after .
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