Starting with bare land, WPL is the net present value of all future expected cash flows discounted at some minimum acceptable rate of return (MAR). Thus, WPL is the maximum a buyer can pay for land and still earn the MAR. The WPL is usually expressed in dollars per unit area, for example, $/acre (In forestry, WPL is also known as land expectation value or soil expectation value.
WILLINGNESS TO PAY FOR LAND (WPL)
