You own some land at the edge of blacksburg. an individual wants to sign a contract where she rents the land from you for 10 years to operate a golf driving range. she is willing to pay $20,000 per year (at the end of each year). she will then buy the land from you at the end of year 10 for $250,000. alternatively, she is willing to accept a five-year contract, but will only pay $15,000 per year (at the end of each year) and not buy the land at the end of the contract. you suspect that in five years, blacksburg will have grown enough that a developer will buy your land to build new homes. how much does the developer need to pay you at the end of five years to make the shorter contract the better option? assume a 4% interest rate.

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)