Answer:
$0
Step-by-step explanation:
Given that:
Preparation and sowing cost = $240,000
Cost of harvest after a year = $93,200
Worth of crop = $350,000
Interest rate (r) = 7% = 0.07
Net present value of Investment :
[(worth - Cost after 1 year) / (1 + r)] - initial investment cost
[(350,000 - 93,200) ÷ (1 + 0.07)] - 240,000
[256,800 / 1.07] - 240,000
$240,000 - $240,000
= $0