Richard's Tree farm , Inc is doing well after its incorporation. Jake Richards, president, chief of operations and majority shareholder, currently has a planting of 10,000 three year old Japanese dogwood trees in a recently introduced pink flowered variety.
Size. Age. Current market value $
6 3 years 24
8 6 years 34
10 9 years. 40
a) Because of inflation, Jake expects the price at which he can sell the trees to increase by 3% per year. What price does he expects to receive if he keeps the trees until they reach 8feet or 10 feet tall?
b. Using Jake discounts the future price of the trees at 10% per year, what's the present value of their future prices?
C. Using the time value of money equation, compute the growth rate of the trees between the third year and the sixth year and between the sixth year and the ninth year
d. When should Jake sell the trees?
e. A major landscape contractor who has successfully on a large-scale Boston beautification and urban greening project has offered to buy 10,0000 flowering dogwood trees at a price of $28,000, payable immediately………… lower than the price estimated Question: Should Jake accept the offer if his required rate of return is 10%
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
