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An Orcharder Spends $100,000 to Plant Pomegranate Bushes

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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?


Definitions:

Transit Advertising

A type of out-of-home advertising where promotions or advertisements are placed inside or on the exterior of public transportation vehicles or stations.

Subways

Underground passenger transportation systems found in many urban areas, designed for mass transit.

Cost Per Hire

The total expenses incurred by an organization to fill a job vacancy, divided by the number of hires, including advertising, recruiting, and administrative costs.

Direct Costs

Costs directly associated with the manufacture of particular products or services, including labor and raw materials.

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