Question
On a farm, the crop of peaches is to be grown with two varieties, Baladi and Improved. Extract the non-discounted metrics and the discounted metrics
On a farm, the crop of peaches is to be grown with two varieties, Baladi and Improved. Extract the non-discounted metrics and the discounted metrics (the ratio of returns to costs, and the net present value, using a discount factor of 8%) and the internal rate of return
Within the following data:
1. The project is 6 years old.
2. The land area is 20 dunums and the cost of purchasing one dunum for the purposes of the project is $ 100.
3. The farm needs a spraying motor with a cost of $ 500 and a useful life of 5 years.
4. The tractor costs $ 10832 and has a useful life of 15 years.
5. The farm needs tools for agricultural work at a cost of $ 200 and a useful life of two years.
6. The cost of the irrigation system is $ 1832 and its useful life is 4 years.
7. The cost of the transplant from the Baladi peaches was half a dollar ($ 0.5) for the implant and one dollar ($ 1) for the improved peach, as one dunum needs 90 saplings per dunum of the Baladi peach and 100 implants per dunum of the improver.
8. Baladi variety begins in the second year, when the average dunum production is 500 kg, the sales price of it is $ 0.9 per kg, and the product is improved in the third year, where the average dunum production is 400 kg and the sales price of it is $ 1.20 dollars per kg. Note that the farmer intends to cultivate 10 dunums of each type
9. The farm needs permanent workers, so that the workers wage is $ 70 per month.
10. The farm needs chemical fertilizer at a rate of 20 kg per acre, noting that the price per ton is $ 100.
11. The farm needs irrigation water at a rate of 200 cubic meters per dunum, noting that the price per cubic meter is $ 0.2 per dunum.
12. As for the remaining other operational costs, they were about $ 15 per dunum.
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