Question: Kris has been considering starting a small tree farm their property as a way to supplement their income. The tree seedlings cost $ 2 each

Kris has been considering starting a small tree farm their property as a way to supplement their income. The tree seedlings cost $2 each to purchase and plant. Kris figures they can plant 1,400 seedlings. If all goes well, in 23 years, they will be able to net $140 per tree when they are harvested. Kris read that an appropriate annual discount rate would be 11%.
What is the NPV of the entire enterprise including the planting costs?

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