1. Given the following information for a 120-acre farm, perform the following tasks.

1. Calculate and fill in the Cash Flow schedule that follows below. This project is to be evaluated for a 5-year period only. (15 points)

Item	Value ($)
Total cost of irrigation system	$90,000
Down payment in cash	$30,000
Capital borrowed (@7% for 3 years)	$60,000
Additional crop income from yield is $284 per acre	$34,080
Additional crop expense from higher input levels is $62 per acre	$7,440
Irrigation expense ($45 per acre)	$5,400

	Year
	1	2	3	4	5
Cash Inflow:
Increase in crop income
Cash Outflow:
Down payment
Additional Crop Expense
Irrigation expenses
Principal payments
Interest payments
Total cash outflow
Net cash flow

Given the 5-year period, is doing this project a wise decision? Explain. (5 points

1. Given the following information for a 120-acre farm, perform the following tasks.

1. Calculate and fill in the Cash Flow schedule that follows below. This project is to be evaluated for a 5-year period only. (15 points)

Item	Value ($)
Total cost of irrigation system	$90,000
Down payment in cash	$30,000
Capital borrowed (@7% for 3 years)	$60,000
Additional crop income from yield is $284 per acre	$34,080
Additional crop expense from higher input levels is $62 per acre	$7,440
Irrigation expense ($45 per acre)	$5,400

	Year
	1	2	3	4	5
Cash Inflow:
Increase in crop income
Cash Outflow:
Down payment
Additional Crop Expense
Irrigation expenses
Principal payments
Interest payments
Total cash outflow
Net cash flow

Given the 5-year period, is doing this project a wise decision? Explain.