Problem:
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.
Required:
Question: If the discount rate is 8%, what is the net present value (NPV) of this investment?
Note: Please answer in proper manner and show all computations.