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A farmer sows a certain crop. It costs $250,000 to buy the seed, prepare the ground, and sow the crop. In one year's time it
A farmer sows a certain crop. It costs $250,000 to buy the seed, prepare the ground, and sow the crop. In one year's time it will cost $100,000 to harvest the crop. If the crop will be worth $400,000, and the interest rate is 10%, what is the net present value (NPV) of this investment? Select one: A. $567,103 B. $22,727 O C. $18,181 D. $87,103
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