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A tech-savvy farmer in the upper Midwest purchased an autonomous tractor by Case IH for his large soybean operation. This innovation is driverless and operated
A tech-savvy farmer in the upper Midwest purchased an autonomous tractor by Case IH for his large soybean operation. This innovation is driverless and operated via a laptop or tablet by the farmer. As a new creation with limited availability, this tractor cost $750,000. The farmer estimates that the cash flows with the autonomous tractor will be $300,000 for 4 years. He hopes to be able to sell the tractor after 4 years for $250,000 (and then buy the latest model). What is the internal rate of return on his investment?
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