Baruch owns an orchard of apple trees. Currently he has 10 trees, producing 100 apples. He needs to invest 1 apple to have 1 more apple tree in the next period. 20% of the trees die over a period. (d = 0.2). Interest rate is 0.05. He only lives for 2 periods. So at the end of the second period, he sells all his trees for the price of 1 apple per tree and eats all the remaining apples.

K' (trees in 2nd period) Y'

8 95

9 98

10 100

11 101

What is V (the present value of lifetime profit) for Baruch if he makes investment of 1 apples?