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A farmer estimates that a 50 acre peach orchard will require aninitial investment of $25,000 for soil preparation and treepurchase and planting costs. Assume the farmer already owns theland that the orchard will be planted on. After planting, cashoutflows are expected in years 1-3 as the young trees areestablished and produce no harvestable crops. Assume outflows of$10,000, $5000, and $5000 in years 1 through 3, respectively. Inyears 4 and 5 production will occur at one half and three quartersof full production, respectively, so revenues will pay a portion ofexpenses, and cash outflows of $1000 in year 4 and inflows of $2000in year 5 will be incurred. In years 6-20, the orchard will be atfull production and the annual net cash inflows are projected to be$5000. After 20 years of useful life, the potential of reducedyields and the development of new varieties usually make itnecessary to consider the replacement of an orchard. So assume thatthe orchard will be replaced after year 20 and that there is nosalvage value at that time. Assume the farmer has a cost of capitalof 9%. What is the approximate net present value of the orchard?HINT: DRAW A TIMELINE OF CASH INFLOWS AND OUTFLOWS$32,530-$9,620$13,780-$15,460