Question 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 dollars 2- A total of 15 dunums have been allocated to grow oranges, noting that each dunum needs 30 seedlings, and the price of one seedling is 5 dollars.

3- In the case of vegetables, tomatoes and cucumbers will be grown. Cucumbers will be cultivated under the greenhouses, and an area of 4 dunams (ie 8 greenhouses) has been specified for them, while tomatoes will be grown in the open field and under the greenhouses, and 4 greenhouses (2 dunums) have been allocated for them. Note that the area of the greenhouse is half a dunam.

4- The price of the greenhouse is $ 1500 and its useful life is 15 years.

5- Every plastic house needs an irrigation network at a cost of $ 400 per house and its useful life is 5 years, while the cost of the open irrigation system in the case of vegetables is $ 150 per dunum and its useful life is 4 years , and in the case of citruses $ 120 per dunum and its useful life is 4 years.

6- Every 2 houses need one worker, whose monthly wage is $ 300, while two workers for the open space, whether for citrus or vegetables, are allocated for the same wage.

7 - The farm needs a car to transport. The purchase price was estimated at $ 15,000 and its useful life is 15 years.

8- The farm needs fertilization machine and an irrigation pump, at a cost of $ 1,700 dollars, for both of them with a useful life of 7 years.

9- The productivity of the option under the greenhouses is estimated at $ 832 dollars a package of polystyrene per house, the selling price of one package is $ 0.80 dollars. While the average production of tomatoes under greenhouses is 1032 packages and the selling price is $ 0.70. In the open field, it is expected that the productivity of tomatoes will reach about 1200 packages, the selling price of the package is $ 0.5, while the cost of the empty package is estimated at $ 0.2. In the case of citrus fruits, the packaging needs were estimated at about 400 packages per dunum.

10- A loan of $ 7,000 will be taken with an interest of 7%, noting 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 remaining balance over a period of 7 years.

11- The total operating costs of the farm were estimated at about $ 2,500 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 of a kilogram of oranges sold was $ 0.25 dollars / kg in the first year of production and about $ 0.20 / kg in the second year of production until the end of the project.