Homework No (5) It is intended to implement a project for the production of Nabali olives in the Ajloun region. The farmer was asked to submit an economic feasibility study as necessary to implement the project. Do the economic feasibility of the project by calculating the ratio of returns to costs and the net present value using a discount factor of 12% and give your recommendation: Should the institution proceed with the implementation of the project or not? Taking into consideration the following assumptions of the project:

1- The land area is 20 dunums, where each dunum needs 25 trees, and the purchase price for one olive tree is 2 dinars.

2- The price of a dunum of land when purchasing was estimated at 332 dinars.

3- The project owner needed 4 workers over five days to plant olive trees, for a daily wage of 10 dinars per worker.

4- The project needs local manure at a rate of one ton per dunum and the cost of one ton for purchase is 50 dinars. This takes into account adding manure to the land by the same amount every 3 years once, noting that the project is 15 years old.

5- The project needs to buy a small tractor for the purposes of plowing and cultivation, at a cost of 6832 dinars, and its useful life is 10 years

6- The project required any irrigation system (for supplementary irrigation purposes) at a cost of 1000 dinars for a pumping pump and a useful life of 4 years, a drip irrigation network at a cost of 90 dinars per dunum and a useful life of 5 years, and fertilizer 300 dinars and a useful life of 3 years.

7- During the summer months, the project needs to transport water for irrigation purposes at a cost of 30 dinars per tank, for a period of two times each month over a period of 4 months during the year.

8- The project requires permanent employment at the rate of one worker throughout the year, with a monthly rent of 120 dinars.

9- The project needs seasonal labor at the rate of 10 workers for a period of one month during the harvest season, with a daily wage of 5 dinars per worker (the month was considered 30 days).

10- The project needs a number for pruning and harvesting purposes, with a total cost of 250 dinars, and its useful life is two years.

11- The olive trees start their production in the fourth year of the projects life at a rate of 50% of the economic production of 100 kg per tree. Then the trees production increases in the fifth year to become 80 kg until it reaches the economic production of 100 kg per tree in the sixth year and then The problem of sustaining production begins in the seventh year, when production decreases at a rate of 10% (90 kg / tree), then production returns to the level of 100 kg per tree in the eighth year, then production returns to the year in the ninth year and so on to the end of the life of the project. The sales price was about 0.5 dinars / kg. by using excel