1a. Suppose you buy an apple tree for $900. The tree bears $30 worth of fruit every...
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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?
Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
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