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suppose that the firm aggie alfalfa has a hay field that they are willing to sell today. the net annual returns to the hay ield are expected to be $35,000 per year for the next 15 years. at the end of 15 years, it is expected that the land will sell for $25,000. calculate the market value of the orchard if the market rate of return on comparable investments is 14%.

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BinithaR

The market value of the orchard if the market rate of return on comparable investments is 14% is $3500

What is meant by market value ?

Market value, sometimes referred to as OMV or "open market valuation," is the cost that an asset would command on the open market or the estimation that the financial community makes of a specific equity or company.

Market value is the price at which a piece of property would sell in the open market, taking into account reasonable costs like brokers' fees. The price that a buyer is willing to pay on the open market.

Given,

25000 * 14%

=3500

To learn more about market value refer to :

https://brainly.com/question/14612966

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