1. Would it be profitable to expand Julie and Bill Razorback's hog operation at a cost of $30,000? The expected cash flows in years one through five are $6,000, $7,000, $7,500, $7,000, and $7,000, respectively. Inflation is 6% and the time preference rate is 2%. 2. Mandy and Wade Creditor plan to expand their stocker cattle operation. They expect to borrow $250,000, and plan to repay the loan annually over twenty years. They expect an 8% interest rate. How much can they expect to pay each year? 3. Joe and Tonya Rodeo are going to buy a new truck for their ranch. Relevant information about the two trucks is as follows: Truck A Truck B Original Cost $23,000 $19,000 Projected Economic Life 4 Years 3 Years Annual Cash Outflows $4,000 $3,800 Salvage Value $3,500 $3,000 If the after-tax discount rate is 5%, which truck should they purchase? 4. After reviewing the CoBank's current economic review what effect do believe the information will have on agricultural lending during 2020