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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 $11,000 per year. If the discount rate is 10%, what is the net present value (NPV) of this investment?
A.$7,207
B. $18,018
C. $36,036
D. 10,811
PLEASE SHOW YOUR WORK ON A FINANCIAL CALCULATOR OR EXCEL.
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