1. Assume that a farmer has $223,500 in Total Assets and $90,500 in Liabilities, faces 20% income tax rate, and 15% consumption rate. Further, assume that the interest rate is 10.5%. What is the rate-of-return on assets if the growth rate is 9.5%? 2. Calculate the annual depreciation expenses using the Sum-of-the-Year's-Digits method for a new asset that costs $57,750 with a life expectancy of 6 years and a salvage value of $15,750. Year Beginning Book Value Depreciation Rate Depreciation Expense Ending Book Value 1 2 3 4 5 6 3. How many years does it take for your investment to increase by 33% at 13.5% annual interest rate? What interest rate is required for your investment to increase by 33% in 7 years? 4. Total assets: end of the year = $345,000; Net Farm Income = $57,500; Interest Expense = $11,000, Leverage ratio = 0.5 a. Calculate owner's equity b. Calculate liabilities c. Calculate the rate of return on equity and the cost of farm debt d. What is the absolute return on assets and the rate of return on assets