1a. Suppose you buy an apple tree for $900. The tree bears $30 worth of fruit every six months; the first harvest will occur six months from today. In one year from today, you will have to spend $20 on a special fertilizer to ensure the tree continues to produce fruit. In two years from today, the tree will produce its last harvest, and you will sell the tree to a lumber company for $1,000. What is the (annualized) IRR of the tree?

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You bought the tree for 900 In 6 months you earn 30 In ... View the full answer