An orcharder spends $95,000 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 $11,000 per year. If the discount rate is 8%, what is the net present value (NPV) of this investmem O A. $4.685 O B. - $7,809 OC. $3,123 O P. -$15.617

An orcharder spends $95,000 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 $11,000 per year. If the discount rate is 8%, what is the net present value (NPV) of this investmem O A. $4.685 O B. - $7,809 OC. $3,123 O P. -$15.617

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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