An Orcharder Spends $100,000 to Plant Pomegranate Bushes

question 122

Multiple Choice

An orcharder spends $100,000 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 8%,what is the net present value (NPV) of this investment?

• A)-$27,834
• B)-$12,897
• C)$108
• D)$3,268

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Definitions:

Variables

Elements in programming that are used to store data that can be changed during the execution of a program.

Function Name

The identifier given to a block of code that can be executed in a program, allowing for the segregation and reuse of code.

Conversion Control Sequence

A Conversion Control Sequence is part of programming syntax used to format output or convert data types explicitly.

%d

%d is a format specifier in C and C-like languages that is used in string formatting functions to represent an integer variable.