Question
Tile Drainage. Which of the following statement(s) are correct? Select all that apply. Choice 1 of 4:If the expected yield increase was 14% instead of
Tile Drainage". Which of the following statement(s) are correct? Select all that apply.
Choice 1 of 4:If the expected yield increase was 14% instead of 10%, the NPV (net present value) of the tile drainage project (over 25 years) would be positive and should therefore be realized.
Choice 2 of 4:Under the current assumptions, the tile drainage project will pay for itself (amortize) within 10 years.
Choice 3 of 4:Based on the current assumptions of 25 years useful life and 10% yield increase, Paul Dietrich should not invest in the tile drainage project since the NPV (net present value) is negative.
Choice 4 of 4:The NPV (net present value) will increase if the tile drainage could be effective for 50 years, i.e., the useful life increases to 50 years, all else equal.
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