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3) (% 35) Suppose that the seasonal yield s and the market prices for wheat, corn, and sugar beets contingent on the weather condition are

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3) (% 35) Suppose that the seasonal yield s and the market prices for wheat, corn, and sugar beets contingent on the weather condition are given by Wheat Dry Wet Normal 4 Yield (Ton/Acre) Planting Cost ($/Acre2 Selling Price (S/Ton) 200 200200 140 150 100 Corn Dry Wet Normal Yield (Ton/Acre) Planting Cost ($/Acre)180 Selling Price (/Ton) 4 180 155 170 Sugar Beets 14 220 Dry Wet Normal 12 180 35 20 180 32 Yield (Ton/Acre) Planting Cost (S/Acre Selling Price ($/Ton) 180 Also assume that the annual interest rate is 8% and the probability of observing Dry, Wet, or Normal weather conditions are 20%, 50%, and 30%, respectively. Calculate the expected present value of net benefits and explain which crop should be planted [hint: the costs will occur at the beginning and the revenues at the end of a season]

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