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Company XYZ plans to invest $5 million to clear a tract of land and to set out some young trees. These trees will mature in

Company XYZ plans to invest $5 million to clear a tract of land and to set out some young trees. These trees will mature in 12 years, at which time XYZ plans to sell all the trees at an expected price of $10 million. What is XYZs expected rate of return? In addition, given this rate of return, would you recommend that XYZ proceed with the plan? Why or why not.

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