The asking price of an acre of ranch land is currently $675 per acre. The current net cash flow from ranching and farming is $45 per acre, the investor's cost of capital is 8% and the planning horizon is ten years. The inflation rate of current returns is 1% and land values are negative 1%.

A. Evaluate the profitability (NPV) of the investment assuming no taxes and no debt financing.

B. Evaluate the profitability (NPV) of the investment assuming a tax rate of 20%.

C. Evaluate the profitability (NPV) of the investment assuming a tax rate of 20% and debt financing. Assume a 30% down payment, 8% interest rate, equal payments, and 20 year amortization loan.

D.Using the data from problem B. Find the maximum bid price the investor can afford to pay in order to earn an 8% rate of return. Also, find the maximum price for the conditions of problem C.