A Farmer Sows a Certain Crop

question 80

Multiple Choice

A farmer sows a certain crop.It costs $250,000 to buy the seed,prepare the ground,and sow the crop.In one year's time it will cost $110,000 to harvest the crop.If the crop will be worth $380,000,and the interest rate is 8%,what is the net present value (NPV) of this investment?

• A)-$21,000
• B)-$220
• C)$0
• D)$23,100

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Definitions:

Decoding

The process of interpreting or understanding language, symbols, or data to derive meaning.

Non-verbal Symbols

Means of communication without the use of spoken language, such as gestures, facial expressions, and body language.

Verbal

Relating to words, especially spoken ones, as opposed to non-verbal communication such as gestures or facial expressions.

Listening Skills

The ability to accurately receive and understand messages during the communication process, essential in effective interpersonal interactions.