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You are considering the purchase of 10 acres to plant an apple orchard. The land is...

You are considering the purchase of 10 acres to plant an apple orchard. The land is priced at $17,500/acre and it will cost $65,000 to plant the trees and install the irrigation system. Based on your research, you won't be producing enough apples to sell until year 5. From then on you estimate your net returns will be $45,000 a year. If you plan on operating the orchard for 15 years, what is your NPV? Assume that the land appreciates at 2.75%/year and you sell it after 15 years. Also assume that you have required rate of return of 10.95%.

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