An orchader spends $110,000 to plant pomegranate bushes. It will take four years for the bushes to

provide a usable crop. During each of these 4 years, he will incur annual expenses of $4,500 to

maintain the bushes. He estimates that after that, for the next 20 years he will receive a crop worth

$18,500 per year. If the discount rate is 8%, what is the net present value (NPV) of this investment?

a) $56,731

b) $8,602

c) $23,507

d) $38,412