Problem B. Deciding Whether to Lease or Buy Land You are considering the decision to lease or buy some land. To do that, you need to calculate a number of items, including share rent payments, maximum cash rent you could pay, what the value of the land is, the cash flow implications and possibly other items. This assignment provides a progression through these sorts of calculations and decisions. Part 1. Analyzing Crop Share and Cash Leases (24 points) You've got information from the last 3 years of crop production on land that you own and you want to use that to determine what a 50-50 crop share lease would have cost you versus the cash rent price. Use the information in the table below to complete the table. Assume there is an equal number of corn and soybean acres. Replace each empty cell with a calculation (24 cells). Year 1 Year 2 Year 3 Item Corn Soybeans Corn Soybeans Corn Soybeans Average Selling Price ($/bu) $5.25 $11.75 $5.00 9.50 $5.90 $11.00 Average Yield (bu/acre) 165 50 185 65 150 45 Gross Income for 866.25 587.5 925 enterprise ($/acre) Avg. Gross Income for $726.875 617.5 885 $771.25 495 $690 Crops Landowner Share of Gross Income Value of Inputs ($/acre) $295 $135 $295 $135 $295 $135 Average Input Cost ($/acre) (295+135)/2=215 (295+135)/2=215 (295+135)/2=215 Landowner Share of Input Costs ($/acre) Net Cost of Share Rent Cash Rent Which type of rent was cheaper? $240 $240 $240