3. You are looking for a lifestyle change, but only if it is financially viable. Is this it? A run-down 20 ha mango farm is for sale for $350,000 or $17,500/ha. Parameters for the cost-benefit analysis are listed below in dollars per hectare. Use a real 5% discount rate and assume for simplicity that costs and revenues are on-going forever into perpetuity. Obviously you only purchase the farm once and please assume there is only one equipment purchase cost. Is this a viable investment for you? Note: Work out net present value (NPV) on a per hectare basis. If it is viable per hectare, the farm is viable overall. If you are interested, you could multiply your final result by 20 (for 20 ha), but this is not necessary. Description Farm purchase cost Farm equipment purchase cost Major farm maintenance Amount ($/ha) 17,500 13,000 45,000 Year 0 0 5 and then every 10 years thereafter Annual Annual Annual Wage to yourself (a cost for the business) Production costs Mango sale revenues 2230 trays/ha @ $25.50/tray 6000 38,000 56,865 Attach File Browse My Computer