A company is considering investing $250 million in land that it will hold for 25 years and then resell.
The Investment generates pretax net cash flows of $40 million per year, expressed in today's prices.
Land values are expected to rise at the rate of 7% per year, while other prices are expected to rise at 2% per year.
The Tax rate is 45% and the Opportunity Cost of Capital is 13%. Calculate the NPV of this project.