Business, 07.12.2019 01:31 jacobiroberts18

Discounting. according to economic theory, agricultural land values (prices) equal the present value of expected future rents, where rents are calculated as the difference between revenue received and production costs. suppose the interest rate is 5% and expected future rents on 1 acre of land are as follows: a. year 1: $125 b. year2: $250 c. year3: $3201. what is the price of land?

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Discounting. according to economic theory, agricultural land values (prices) equal the present value...

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