Question
Excersise No (7) Find the net present value and the revenue-to-cost ratio for a farm producing strawberries in Madaba using a discount factor of 12%,
Excersise No (7) Find the net present value and the revenue-to-cost ratio for a farm producing strawberries in Madaba using a discount factor of 12%, according to the following data:
1. The project is 8 years old 2. The project produces the strawberry crop, noting that production starts from the first year of the project and that the production capacity during the first year of the project is equivalent to 50% of the production capacity in the second year, and the production capacity for the second year is equivalent to 2000 kg per house. One kilogram of strawberry product is sold at a price of 1.1 dinars. . 3. The area of the farm reached 20 dunums of which 10 dunums were purchased for the purposes of the project at a rate of 3000 dinars / dunum. The rest was rented at a rate of 100 dinars per acre per year for the first 4 years, and then the rent rose to 180 dinars per dunum until the end of the project. 4. 4 purchased ...
4. 40 plastic houses were purchased, the cost of purchasing the structure is 800 dinars per house, the useful life is 10 years, the cost of purchasing plastic cover is 200 dinars per house, and the useful life is 4 years. 5. The farm needs a tractor at a cost of 4000 dinars and a useful life of 5 years. 6. Rooms for workers have been built at a cost of 2000 dinars and a useful life of 10 years 7. Every plastic house needs an irrigation system at a cost of 100 dinars and a production life of 4 years 8. A spray motor was purchased at a price of 1500 dinars and a useful life of 3 years. 9. The other operational costs for each plastic house were 100 dinars / year. 10. A loan amounting to 6000 dinars was taken to be disbursed in the first year of the project, to be paid in 6 installments. Note that the first year of the project was considered a grace period with the interest being collected, and that the interest rate is equivalent to 10%. 11. The farm needs 3 permanent workers throughout the year, with a monthly salary of 200 dinars / worker. While the farm needs seasonal workers during the harvest period, at a rate of one worker for every 4 houses for a period of 3 months, and a monthly salary of 250 dinars / worker.
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