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Compute the yield rate on an investment in an orchard advertised for sale at $300,000. The orchard is expected to be productive for 20 years,
Compute the yield rate on an investment in an orchard advertised for sale at $300,000. The orchard is expected to be productive for 20 years, after which time the property will be worth about $65,000. The expected annual net income is $35,000, and deposits into a depletion reserve could earn 9.5%, compounded annually.
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