Question $17$

HomeworkUnansweredDue Mar $25$th$,11$:$59$ PM

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You want to start an organic garlic farm. The farm costs $$230,000,$ to be paid in full immediately. Year $1$ cash inflow will be $$25,000,$ with subsequent inflows growing at a $5\%$ annual rate until the end of year $5$ when you anticipate selling the farm for $$260,000($at the end of year $5$ you get both the last cash inflow from operations and from selling the farm$).$ What is the IRR of your garlic farm investment? Round to the tenth of a percent $($e$.$g$.5\mathrm{.}6\%=5\mathrm{.}6).[$Hint: You'll need to solve this using Excel's IRR function or using a financial calculator. If using Excel, make sure the IRR cell is set to show several decimal places instead of a whole number.$]$

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