A paper company invests $4m to clear a tract of land and plant some young pine trees.
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A paper company invests $4m to clear a tract of land and plant some young pine trees. The trees will mature in 10 years, at which time the forest will have a market value of $12m. The required rate of return for long-term projects is 15%. Calculate the internal rate of return for the paper company's investment and decide if the project should be accepted or rejected.
Related Book For
Financial management theory and practice
ISBN: 978-0324422696
12th Edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
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