expected to average $2.75/lb and 750 lb are expected to average $2.50/lb. You have been investing $50/head in processing, meds, vet bills, and implants for the yearlings. The 3-year old bred cows can be purchased for $2250. After 5 years, you can sell her as a 8-yr old cull cow for $1250. Your interest rate is 4.5% Should you buy cows or continue producing yearlings? Problem 2b) Companion animal partial budget homework. You are evaluating the purchase of a dog kennel boarding facility that has kenneling space for 35 dogs. The current owner charges $42.50 per dog per day and averages 65% capacity. You estimate that if you reduced the charge to $35.00 per dog per day, you would average 80% capacity. You can purchase the business for $325,000 and assume all of the customers will stay with you. The salvage value of the business is $0 and you expect to run it for 10 years. The interest rate is 4.5%. The facility is rented and costs $500/month. One hour of paid labor costs $9.00 and can care for 2 dogs/day, on average (i.e. it costs $4.50/day for labor on a dog). You can hire part-time labor. You expect to spend $200/month on supplies and $300/month on insurance. Should you purchase the business? How much should you charge for kenneling