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What is farmer john internal rate of return for new tractor

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Problem 1: Suppose Farmer John purchases a new tractor for mowing his pig pastures at a cost of $10,000. He expects this tractor to contribute $5,000 in net returns in the first year, and will decline by 10% of the previous year's net return contribution for the following three years. What is Farmer John's internal rate of return for this new tractor?

Reference no: EM132930229

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