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In Florida, changing weather patterns have increased the probably of crop damage to oranges. The value of the orange crop is given for a typical

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In Florida, changing weather patterns have increased the probably of crop damage to oranges. The value of the orange crop is given for a typical year in the table below.. If the new trees cost $200,000 to plant and the first crop won't be harvested for 4 years. What is the NPV and should be the trees be purchased/planted if the company has a cost of capital of 15% and a total life of trees 10 years (7 years of harvest)? Value of Crop Annually $125,000 $100,000 $25,000 $10,000 Probability 70% 20% 8% 2% $100,090, Yes $100,090, No $-27,670 No $27,670 Yes O $36,020 Yes

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