Faced with high demand for corn as a source of ethanol fuel production, a farmer is considering planting more corn, requiring the purchase of a new, larger planter. The planter will cost $ 18,000 and has an expected service life of six years, with a salvage value of 10% of the initial purchase price. The new planter allows the farmer to sow the seeds in less time and increase the yield of the average crop. The net cash flow of this most efficient planter is:

Is this a good investment project? Give your NPV net present value result. Use a TREMA rate of 11%

n 0 1 2 3 4 5 6 --$18,000 $4,800 $6,350 $7,735 $7,500 $4,300 $7,000 + $1,800