An orcharder spends $90,000 to plant pomegranate bushes

Finance Jun 07, 2021

An orcharder spends $90,000 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 $10,000 per year. If the discount rate is 9%?, what is the net present value? (NPV) of this? investment?

Expert Solution

So, Net Present Value of the Investment is -$25,331.08 which is negative.

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