Chris invested $300K to buy a farmland. The expected yearly revenue is assessed as $67K if farmland remain productive for 10 years. The maintenance and operating costs expected to be $3k/year with an $600 yearly increase. What is the rate of return if the selling value of the farmland after 10year is $20K? Hint : try for i=15% and i=18% for the interpolation. (MUST solve it manually by showing deatiled calculation)

Chris invested $300K to buy a farmland. The expected yearly revenue is assessed as $67K if farmland remain productive for 10 years. The maintenance and operating costs expected to be $3k/year with an $600 yearly increase. What is the rate of return if the selling value of the farmland after 10year is $20K? Hint : try for i=15% and i=18% for the interpolation. (MUST solve it manually by showing deatiled calculation)

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 22P

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