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NPV Calculation


Christmas-Tree Investment A business person is planning to invest in Christmas tree production business in which revenues are expected to generate in year 7. The details of cash flows associated with this project are given in the following table: Year Activity Amount ($/ha) 0 Purchase land 2000 0 Prepare land and plant trees 1500 1 Weed control 200 2 Thin the stand 300 3 Prune and shape trees 400 7 Net harvest revenue from the sale of mature Christmas trees 7200