A Farm is producing groundnuts and soya bean on 100 acres of land and 16 goats

on 2 hectares of land. Suppose groundnuts occupies 65 percent and soya bean

35 percent of the total crop area. Yield of groundnuts and soya bean per unit of

land is 120 kilograms and 95 kilograms respectively. The price for a goat is

MWK40,000, soya bean is MWK15/Kg and groundnuts is MWK20/Kg. To produce

these enterprises, the farm incurred the following variable costs:

Input Cost (MWK)

Inoculants 4,000

Labour 10,000

Seeds 50,000

Repairs and maintenance 7,000

Fuel 50,000

Drying management 10,000

Forage management 100,000

Herding 50,000

Using the income capitalization rate of 15.6 percent, estimate total value of land

and the value per unit of crop land. (15