You have inherited an apple orchard and want to sell it in

Question

You have inherited an apple orchard and want to sell it in the next four years. An expert in apple orchard valuation has estimated the after-tax cash flow you would receive if you sold at the end of each of the next four years as follows: $1,100,000 if you sell in one year; $1,400,000 if you sell in two years; $1,600,000 if you sell in three years; and $1,700,000 if you sell in four years. Your opportunity cost of capital is 8 percent. Calculate the NPV of each alternative. (Round intermediate calculations and final answers to the nearest whole dollar, e.g. 5,275.)

NPV₁$_______________

NPV₂$______________

NPV₃$_____________

NPV₄$_________________

When should you sell the orchard?

You should sell the orchard after  _________________ (one year,two years,three years,four years)