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If you were the cfo of this company would you purchase the

An investment firm purchases a large parcel of land for 3 million dollars. It makes no improvements to the land and collects no receipts regarding the land. In 5 years the firm anticipates that they will sell the land for 4 million dollars. The firm is in the 35% marginal tax bracket and has a WACC of 5%. If you were the CFO of this company would you purchase the land based on your understanding of Net Present Value (NPV)? Please briefly explain your answer.

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Financial Management: If you were the cfo of this company would you purchase the

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