A farmer spends $100,000 to plant fruit trees. It will take four years for the trees to provide a usable crop. He estimates that every year for 20 years after that he will receive a crop worth $10,000 per year. If the discount rate is 8%, what is the net present value (NPV) of this investment?

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The Answer of A farmer spends $100,000 to plant fruit trees. It will take four years for the trees to provide a usable crop. He estimates that every year for 20 years after that he will receive a crop worth $10,000 per year. If the discount rate is 8%, what is the net present value (NPV) of this investment?

A Farmer Spends $100,000 to Plant Fruit Trees