Question: I've been really struggling to calculate the Net Present Value for this question. Help/the steps to achieve this are greatly appreciated! The Biological Insect Control

I've been really struggling to calculate the Net Present Value for thisI've been really struggling to calculate the Net Present Value for this question. Help/the steps to achieve this are greatly appreciated!

The Biological Insect Control Corporation (BICC) has hired you as a consultant to evaluate the NPV of its proposed toad ranch. BICC plans to breed toads and sell them as ecologically desirable insect-control mechanisms. It anticipates that the business will continue in perpetuity. Following the negligible start-up costs, BICC expects the following nominal cash flows at the end of the year: Revenues Labour costs Other costs $265,000 185,000 55,000 The company will rent machinery for $90,000 per year. The rental payments start at the end of year 1 and are expressed in nominal terms. Revenues will increase by 4 percent per year in real terms. Labour costs will increase by 3 percent per year in real terms. Other costs will increase by 1 percent per year in real terms. The rate of inflation is expected to be 6 percent per year. BICC's required rate of return is 10 percent in real terms. There are no taxes. All cash flows occur at year-end. What is the NPV of BICC's proposed toad ranch today? (Do not round intermediate calculations. Round the answer to 2 decimal places. Omit $ sign in your response.)

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