Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.10
million. This investment will consist of $2.30 million for land and $9.80 million for trucks and other equipment. The land all trucks and all other equipment
is expected to be sold at the end of 10 years at a price of $5.18 million $2.29 million above book value. The farm is expected to produce revenue of $2.01
million each year and annual cash flow from operations equals $1.88 million. The marginal tax rate is 35 percent and the appropriate discount rate is 10
percent. Calculate the NPV of this investment.
To earn full points please show work so i can see how properly calulate this in the future.