You are given the following information: Cash rent($/acre) Land price Acres Yield (bu/acre) Price ($/bu) Gov...

 

Transcribed Image Text:

You are given the following information: Cash rent($/acre) Land price Acres Yield (bu/acre) Price ($/bu) Gov payments ($/acre) Revenues ($/acre) Operating costs ($/acre) Growth rate Discount rate Marginal tax rate Year Revenues 5% 10% 1 2 25% $120 $1,500 100 120 $5.00 $25 $500 Please fill in the following table for the case where land is rented. Operating Rent costs Loan information Land price Down payment Loan value Years Annual interest rate Annual payment payments Taxes $150,000 $25,000 125,000 40 5.00% $7,285 Net after tax cash flow You are given the following information: Cash rent($/acre) Land price Acres Yield (bu/acre) Price ($/bu) Gov payments ($/acre) Revenues ($/acre) Operating costs ($/acre) Growth rate Discount rate Marginal tax rate Year Revenues 5% 10% 1 2 25% $120 $1,500 100 120 $5.00 $25 $500 Please fill in the following table for the case where land is rented. Operating Rent costs Loan information Land price Down payment Loan value Years Annual interest rate Annual payment payments Taxes $150,000 $25,000 125,000 40 5.00% $7,285 Net after tax cash flow

Answer rating: 100% (QA)

For Year 1 Revenues Land Size acres X Yield buacre X Price per acre bu Land Size acres X Gov Payment... View the full answer