An Orcharder Spends $110,000 to Plant Pomegranate Bushes

An orcharder spends $110,000 to plant pomegranate bushes. It will take four years for the bushes to provide a usable crop. He estimates that every year for 20 years after that he will receive a crop worth $10,500 per year. If the discount rate is 9%, what is the net present value (NPV) of this investment?

A) -$42,098
B) -$21,049
C) $8420
D) $12,629