Unformatted text preview: Think Break #19 Suppose you planted ginseng this year, to be harvested in 4 years for $10,000/ac. At a 7.5% discount rate, what is the present value of $10,000 in 4 years? Think Break #19 Answer Suppose you planted ginseng this year, to be harvested in 4 years for $10,000/ac. At a 7.5% discount rate, what is the present value of $10,000 in 4 years? PV = 10,000 x 1/(1.075)4 = $7,488.01 ...
View
Full
Document
This note was uploaded on 08/08/2008 for the course AAE 320 taught by Professor Mitchell during the Spring '08 term at University of Wisconsin.
 Spring '08
 MITCHELL

Click to edit the document details