Agri-Industries purchased some agricultural land at the edge of a large metropolitan area for $250,000 five years ago.In order to have the land classified as agricultural for property tax purposes,the company has been leasing the property to neighboring farmers.The before-tax return from leasing the property is $12,000 per year.This company's corporate tax rate is 35 percent.If the company sells the land for $400,000 today,what is the internal rate of return on this investment?

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The Answer of Agri-Industries purchased some agricultural land at the edge of a large metropolitan area for $250,000 five years ago.In order to have the land classified as agricultural for property tax purposes,the company has been leasing the property to neighboring farmers.The before-tax return from leasing the property is $12,000 per year.This company's corporate tax rate is 35 percent.If the company sells the land for $400,000 today,what is the internal rate of return on this investment?

Agri-Industries Purchased Some Agricultural Land at the Edge of a Large