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1. Assume that John's agribusiness provides following information to you. Total assets= $300,000 Total liabilities= $200,000 Owner's equity=$100,000 Can you calculate the Wd (the portion

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1. Assume that John's agribusiness provides following information to you. Total assets= $300,000 Total liabilities= $200,000 Owner's equity=$100,000 Can you calculate the Wd (the portion of capital financed by debt) and We (portion of capital financed by equity) of this business? (8 points) 2. Sarah Li is a leading wheat farmer. She is an example of successful women in agribusiness. She is considering to buy a machine for wheat planting, expecting to increase efficiency and enhance profit of her business. This planting machine costs her $200,000. But having this planting machine increases productivity on wheat enabling her to gain additional $50,000 cash flow every year. This $50,000 additional cash flow is same for every year. Can you calculate the payback period of this planning machine? (8 points) 3. A combine harvester costs $130,000. Following information is provided for its annual net cash flows. Also, note the running total column. Based on this information, what is the payback period of this combine harvester? (5 points) Table 4.1. Payback period with even net cash flows Year Amulet cash flows Running tool 530.000 $30.000 30,000 60.000 30.000 90.000 20,000 110,000 20,000 20.000 1 2 3 5 6 130,000 150.000 120.000 190.000 30,000 20.000 a.Now, compute net present value of this investment at the rate the owner and management of "Bunny agritourism business" expect. Fill out the places with XXXXX (please use formula method to compute PVs, as described in the lecture video). (18 points) Year Net Cash Inflow Present Value 111111 1 , Present Value Year Net Cash Inflow XXXXXX 30,000 1 XXXXXX 2 20,000 20,000 XXXXXX XXXXXX 20,000 4 15 15,000 XXXXXX 16 15,000 XXXXXX 7 15,000 XXXXXX 18 10,000 XXXXXX 9 10,000 XXXXXX 10 10,000 XXXXXX Total Present Value XXXXXX Initial Investment in Application Ner Present Value $111.000 XXXXXX

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