Where did I go wrong with question 6?

Question 5 5 out of 5 points You are thinking of supplementing your Christmas tree business by building a fish farm that raises rainbow trout. Your rich aunt passed away and left you a considerable inheritance, so you can pay for the equipment all at the beginning of the project (no need for a loan). You bought the tanks and other infrastructure at a cost of $40,000 at the beginning of the project (in Year O). You want to know the net present value of growing and selling five generations of fish. Each generation takes one year to mature. The project will be evaluated at the end of Year 4. In order to operate the farm, you will need to buy the following (in addition to the one-time $40,000 initial cost): 19,000 small trout ("fingerlings") at a cost of $6,650 per year ($0.35/fish) - You must buy new fish each year (including Year O) Fish food, electricity, and labor which costs $18,000 each year (including Year 0) Fish waste disposal which costs $1,000 each year (including Year O) Assume you purchase the fingerlings, food, and other supplies on January 1 and you harvest the fish on December 31 of the same year. You will buy the fish, grow them, then sell them each year. You will sell them on December 31 of one year then start over again on January 1 of the next year. You expect to harvest 20,000 pounds of fish each year. The fish sell for $1.75 per pound. Fish farming is considered a risky investment. You think a suitable real discount rate that accurately reflects the risk is 10%. What is the net present value of this project? Report it as a whole number rounded to the nearest dollar without a dollar sign or comma. Use a negative sign if it is appropriate. Selected Answer: -1012 Question 6 O out of 3 points Your neighbor runs a greenhouse operation. She says to you that fish waste makes excellent fertilizer. She offers to purchase your fish waste from you for $1,000 a year. That means you do not need to spend $1,000 on fish waste disposal. What is the net present value of this project? Report it as a whole number rounded to the nearest dollar without a dollar sign or comma. Use a negative sign if it is appropriate. Selected Answer: 3158 Question 5 5 out of 5 points You are thinking of supplementing your Christmas tree business by building a fish farm that raises rainbow trout. Your rich aunt passed away and left you a considerable inheritance, so you can pay for the equipment all at the beginning of the project (no need for a loan). You bought the tanks and other infrastructure at a cost of $40,000 at the beginning of the project (in Year O). You want to know the net present value of growing and selling five generations of fish. Each generation takes one year to mature. The project will be evaluated at the end of Year 4. In order to operate the farm, you will need to buy the following (in addition to the one-time $40,000 initial cost): 19,000 small trout ("fingerlings") at a cost of $6,650 per year ($0.35/fish) - You must buy new fish each year (including Year O) Fish food, electricity, and labor which costs $18,000 each year (including Year 0) Fish waste disposal which costs $1,000 each year (including Year O) Assume you purchase the fingerlings, food, and other supplies on January 1 and you harvest the fish on December 31 of the same year. You will buy the fish, grow them, then sell them each year. You will sell them on December 31 of one year then start over again on January 1 of the next year. You expect to harvest 20,000 pounds of fish each year. The fish sell for $1.75 per pound. Fish farming is considered a risky investment. You think a suitable real discount rate that accurately reflects the risk is 10%. What is the net present value of this project? Report it as a whole number rounded to the nearest dollar without a dollar sign or comma. Use a negative sign if it is appropriate. Selected Answer: -1012 Question 6 O out of 3 points Your neighbor runs a greenhouse operation. She says to you that fish waste makes excellent fertilizer. She offers to purchase your fish waste from you for $1,000 a year. That means you do not need to spend $1,000 on fish waste disposal. What is the net present value of this project? Report it as a whole number rounded to the nearest dollar without a dollar sign or comma. Use a negative sign if it is appropriate. Selected Answer: 3158