Jake's Tree Farm Is Evaluating a Proposal to Plant 5,000

question 2

Multiple Choice

Jake's Tree farm is evaluating a proposal to plant 5,000 ornamental trees at an initial cost of $10,000. The trees will be sold in 5 years. What is the minimum after tax cash flow from selling the trees that will allow the tree planting project to reach break even NPV? Use a discount rate of 12%.

• A) $12,000.00
• B) $5,674.26
• C) $17,623.42
• D) $17,958.56

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Definitions:

Chicago

A major city in the United States known for its significant contributions to architecture, culture, and the economy.

Node Class

A basic structure in computer science that contains data and also may link to other nodes, typically used in linked lists and tree structures.

Empty List

A list data structure that contains no elements, often used as an initial state for collection-based operations.

Reference Instance Variable

A variable in object-oriented programming that holds the reference to an instance of an object rather than the object itself.