An orcharder spends $105,000 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

$9,000 per year. If the discount rate is 8%, what is the net present value (NPV) of this investment?

A.

$8,010

B.

$12,015

C.

$40,050

D.

$20,025

Click to select your answer.