Question: This question has multiple parts Afumer rows a certain crop. It couts $230,000 to buy the wood, prepare the ground, and sew the emp. In

 This question has multiple parts Afumer rows a certain crop. It

This question has multiple parts Afumer rows a certain crop. It couts $230,000 to buy the wood, prepare the ground, and sew the emp. In one years time it will cost 5141.600 to harvest the crop. The hammere best time is that the crop wil bewer $390,000 in one year. The farmer can borrow and lend at an interest rate is 8% Part A) The ne presentan (PPV) of the farmer's decision to proceed with this mestment is closest to which of the following O A $230,000 OB. 5131,111 OC. 50 OD 1991,111 Part 3) The former is conned shout the uncertainty turning the price that he will receive for her harvested crop in one you. She has the opportunity to enter to forward agreement whereby she can look sa price of $415.000 for her arveled crop in one yer usiminting any notany The cost of entering to this contra 523,000. Dayabile de thout the former enter into the forww.greement and force of her harvested crop? OA You she should enter into this agreement O No, the should not enter into this great Part) What pince would the farmer need to pay for the forward agreement described in Part such that the NPV of her overal farming investment would be unchanged from that calculated in Part? Price of forward contract such tut NPV is changat tplease round your answer to the nearest dollar)

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