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An orcharder spends $100,000 to plant pomegranate bushes. It will take four years for the bushes to provide a usable crop. He estimates that every
An orcharder spends
$100,000
to plant pomegranate bushes. It will take four years for the bushes to provide a usable crop. He estimates that every year for 20 years after that he will receive a crop worth
$10,000
per year. If the discount rate is
8%,
what is the net present value (NPV) of this investment?
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