Question one

1. In terms of performance criteria, distinguish farm income analysis from funds flow analysis from farm investment analysis. 3 marks
2. How is the partial budgeting technique employed to analyse the performance of a project? 3 marks
3. In analysis of agricultural projects, Elucidate on the six major objectives of financial analysis 3 marks
4. What constitutes farm resource use in farm investment analysis? 2 marks
5. Distinguish accrual accounting from cash accounting 4 marks

Question two

(b) Outline any three information sources for market prices available to a project manager especially for agricultural based commodities. 3 marks

1. Describe each of the following terms

1. Marginal Value Product (MVP) 2marks
2. Opportunity cost 2 marks

(c) What is an export parity price? Give an export parity price for a specified commodity. (Starting with the fob price)