What is the NPV of the grain investment if a $1\%$ ?risk premium is included.

Table 1 shows two alternative options for a $20k up-front investment, along with the Net Present Values associated with each. The discount rate used in the table is 4% Table 1: Alternative $20k Investments, with PVs Year Cow/Calf PV Grain PV Discount Rate 4% 0 -$20,000 -$20,000 -$20,000 -$20,000 1 $2,000 $1,923 $5,800 $5,577 2 $4,000 $3,698 $5,800 $5,362 3 $6,000 $5,334 $5,800 $5,156 4 $8,000 $6,838 $5,800 $4,958 5 $10,000 $8,219 $5,800 $4,767 Total: $10,000 $6,013 $9,000 $5,821