A farmer sows a certain crop. It costs $240,000 to buy the seed, prepare the ground, and sow the crop. In one year's time it will cost $93,200 to harvest the crop. If the crop will be worth $350,000, and the interest rate is 7%, what is the net present value (NPV) of this investment?
A) $240,000
B) $87,103
C) $0
D) $567,103

Question

Quizplus · Accepted Answer

C) 11ea84dc_f54f_f135_9a63_9bf566e803f3_TB1316_11_TB1316_11 - 240,000 = $0

A Farmer Sows a Certain Crop