Question
Homework No (6) A diversified farm is intended to produce vegetables and oranges, noting that the project is 10 years old and the land area
Homework No (6) A diversified farm is intended to produce vegetables and oranges, noting that the project is 10 years old and the land area is 30 dunums, of which 15 dunums were allocated for vegetable production, while the rest was for orange production. Calculate the ratio of returns to costs and net present value using a discount factor of 12% and the internal rate of return within the following data:
1- The land was purchased specifically for the project at a cost of 182 dinars per dunum.
2- 15 dunums have been allocated for growing oranges, noting that each dunum needs 30 seedlings, and the price of one seedling is 5 dinars.
3- As for vegetables, tomatoes and cucumbers will be grown. Cucumbers will be cultivated under the greenhouses, and an area of 4 dunams (i.e. 8 greenhouses) has been specified for them, while tomatoes will be grown in the field open and under greenhouses, and 4 greenhouses (2 dunams) have been allocated for them, while the rest and the amount (9 dunams) will be grown open. Note that the area of the greenhouse is half a dunam.
4- The price of the plastic house is 1500 dinars, and the productive life is 15 years.
5- Each plastic house needs an irrigation network at a cost of 400 dinars per house and its useful life is 5 years, while the cost of the disclosure irrigation system in the case of vegetables was 150 dinars per dunum and its useful life is 4 years, and in the case of citruses 120 dinars per dunum and its useful life is 4 years.
6- Every two homes needs one worker, whose monthly wage is 300 dinars, while two workers are allocated to the open space, whether for citrus or vegetables, and for the same wage.
7 - The farm needs to cost 15,000 dinars, and its useful life is 15 years.
8- The farm needs fertilizer and an irrigation pump at a cost of 1700 for both of them and their useful life is 7 years.
9- The productivity of the option under the greenhouses is estimated at 832 packages of polystyrene per house, the selling price of one package is 0.80 dinars. While the average production of tomatoes under greenhouses is 1032 packages and the selling price is 0.70 dinars. In the open field, it is expected that the productivity of tomatoes is about 1,200 packages and the selling price of the package is 0.5 dinars, while the cost of an empty package is estimated at 0.2 dinars. In the case of citrus fruits, the packaging needs were estimated at about 400 packages per dunum.
10- A loan in the amount of 7000 will be taken with interest of 7% knowing that the loan will be received in the first year of the project and there is a grace period of 2 years provided that interest is collected on the balance remaining over a period of 7 years.
11- The total operational costs of the farm are estimated at 2,500 dinars annually.
12- The production of oranges will start in the fourth year of the project at 60% of the economic production and increase in the fifth year to reach 80% of the economic production, which is estimated at about 2000 kg of the orange crop, which trees reach in the sixth year. Note that the price per kg of oranges sold was 0.25 dinars / kg in the first year of production and about 0.20 dinars / kg in the second year of production and until the end of the life of the project. Use an excel program
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