Uncle wilburs trout ranch is now for sale for 40000 annual


Uncle Wilbur's trout ranch is now for sale for $40000. Annual property taxes, maintenance, supplies, and so on, are estimated to continue to be $3000 per year. Revenues from the ranch are expected to be $10000 next year and then decline by $500 per year thereafter through the tenth year. If you brought the ranch you would plan to keep it only 5 years and at that time sell it for the value of the land, which is $15000.If your desired annual rate of return is 12%,should you become a trout rancher? Use the present worth method.

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