Question: Question 4. Capital Budgeting (2 points) You are given the following information: Cash rent($/acre) $120 Land price $1,500 Acres 100 Yield (bu acre) 120 Price

Question 4. Capital Budgeting (2 points) You are given the following

Question 4. Capital Budgeting (2 points) You are given the following information: Cash rent($/acre) $120 Land price $1,500 Acres 100 Yield (bu acre) 120 Price ($/bu) $5.00 Gov payments (S/acre) $25 Revenues (Sacre) Operating costs (S/acre) $500 Loan information Land price Down payment Loan value Years Annual interest rate Annual payment $150,000 $25,000 125.000 40 5.00% $7,285 Growth rate Discount rate Marginal tax rate 5% 10% 25% Please fill in the following table for the case where land is rented. Year Revenues Operating costs Rent payments Taxes Net after tax cash flow 050 $0 0 SO $0 2

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