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6. Suppose the farmer you work for is considered the purchase of an irrigation system. This irrigation system will irrigate 120 acres. You compile the

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6. Suppose the farmer you work for is considered the purchase of an irrigation system. This irrigation system will irrigate 120 acres. You compile the following information to help her decide: Cost of irrigation system: $84,000 Additional crop income from yield increase: $204/acre Additional crop expenses from higher input levels: $62/acre Irrigation expenses: $45/acre You find a loan that will cover the cost of the irrigation system that requires equal payments over the first 3 years. Complete the following Cash Flow Budget so that she can see when to expect positive cash flow. Year 3 1 2 4 5 Cash inflow: Additional crop income Cash outflow: Additional crop expenses Irrigation expenses Loan payments Total cash outflow Net cash flow

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