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A farmer sows a certain crop. It costs $ 2 4 0 , 0 0 0 to buy the seed, prepare the ground, and sow

A farmer sows a certain crop. It costs $

240, 000

to buy the seed, prepare the ground, and sow the crop. In one year's time it will cost $

93, 200

to harvest the crop. If the crop will be worth $

350, 000,

and the interest rate is

7 %,

what is the net present value

(

NPV

)

of this investment?

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