Kampgrounds Inc

question 81

Multiple Choice

Kampgrounds Inc.is considering purchasing a parcel of wilderness land near a popular historic site.Although this land will cost Kampgrounds $400,000 today,by renting out wilderness campsites on this land,Kampgrounds expects to make $35,000 at the end of every year indefinitely.If the appropriate discount rate is 8%,then the NPV of this new wilderness campsite is closest to:

• A)-$50,000.
• B)-$37,500.
• C)$37,500.
• D)$50,000.

---

Definitions:

Still-Life Compositions

Still-Life Compositions are artworks depicting inanimate objects arranged together, often including flowers, fruit, vessels, and other household items, celebrated for their beauty, symbolic meanings, and the skill of the artist.

Elevation of the Cross

A masterpiece by artist Peter Paul Rubens, depicting the mounting of Jesus Christ on the cross, celebrated for its dramatic intensity and emotional depth.

Italian Masters

Refers to the renowned artists of the Italian Renaissance and Baroque periods, known for advancing techniques in painting, sculpture, and architecture.

Rubens

Refers to Peter Paul Rubens, a Flemish artist of the Baroque period known for his vivid, dynamic compositions, and voluptuous figures in historical, religious, and mythological paintings.