What is the payback for purchase of the lemon trees

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A citrus farmer intends to plant additional lemon or orange trees. The trees would require a $500,000 investment and the farmer can expect to get $250,000 per year in cash flow from the orange trees that would start in year 3. On the other hand, the farmer could invest the same amount on lemon trees, which would provide $125,000 per year in cash flow starting in year 2. What is the payback for purchase of the lemon trees and the orange trees?

Reference no: EM132420548

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