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Bippert's Farm Is Evaluating a Proposal to Plant 5,000 Apple

Question 11

Multiple Choice

Bippert's farm is evaluating a proposal to plant 5,000 apple 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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