Net present value of investment


Problem:

An orcharder spends $100,000 to planet 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 $9,500 epr year.

Required:

Question: If the discount rate is 9%, what is the net present value of this investment?

Note: Can someone please give me a step by step solution?

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Finance Basics: Net present value of investment
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