The pro forma projections for growing a 20-hectare ginseng crop require the expenditure of $150,000 in the summer that the crop is planted and an additional $50,000 in each of the next two summers to cultivate and fertilize the growing crop. After payment of the costs of harvesting the crop, the profit should be $200,000 in the third summer after planting, and $300,000 in the fourth summer. Determine the IRR of the ginseng crop.

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The Answer of The pro forma projections for growing a 20-hectare ginseng crop require the expenditure of $150,000 in the summer that the crop is planted and an additional $50,000 in each of the next two summers to cultivate and fertilize the growing crop. After payment of the costs of harvesting the crop, the profit should be $200,000 in the third summer after planting, and $300,000 in the fourth summer. Determine the IRR of the ginseng crop.

The Pro Forma Projections for Growing a 20-Hectare Ginseng Crop