During the past year, Serena McGill planted a new vineyard on 150 acres of land that she leases for $30,920 a year. She has asked you, as her accountant, to assist her in determining the value of her vineyard operation. The vineyard will bear no grapes for the first 5 years (1–5). In the next 5 years (6–10), Serena estimates that the vines will bear grapes that can be sold for $64,360 each year. For the next 20 years (11–30), she expects the harvest will provide annual revenues of $110,130. But during the last 10 years (31–40) of the vineyard’s life, she estimates that revenues will decline to $75,170 per year. During the first 5 years, the annual cost of pruning, fertilizing, and caring for the vineyard is estimated at $8,830; during the years of production, 6–40, these costs will rise to $12,050 per year. The relevant market rate of interest for the entire period is 4%. Assume that all receipts and payments are made at the end of each year. Dick Button has offered to buy Serena’s vineyard business by assuming the 40-year lease. On the basis of the current value of the business, what is the minimum price Serena should accept?