Agri-Industries purchased some agricultural land at the edge of a ...

[joe]

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?

Question 2

Suppose the current exchange rates are 1.3215 dollars per euro, and 84.19 yen per dollar. What is
  the current exchange rate between yen and euros?
 
  A) 111.257 yen per euro B) 151.696 yen per euro
  C) 147.571 yen per euro D) 86.356 yen per euro

[xiaomengxian]

Answer to Question 1

Initial investment at time 0 = 250,000
Incremental after-tax cash flows time 1-5:
(1-.35)(12,000)= 7,800
Terminal after-tax cash flow time 5:
400,000 - (400,000 - 250,000)(.

Answer to Question 2

A