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An orcharder spends $110,000 to plant pomegranate bushes. It will take four years for the bushes to provide a usable cro...

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?

Is there a way to solve this using a casio fc-200v calculator

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Answer #1

Calculating PV of Cash Inflow,

PV = [FV = 0, PMT = 10,500, N = 20, I = 0.09]

PV = $95,849.73

NPV = -110,000 + 95,849.73/(1.09)4

NPV = -$42,097.63

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