Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have been contracted by the Tono irrigation project to do cost analysis for the production of irrigation rice. The data generated for such an

You have been contracted by the Tono irrigation project to do cost analysis for the production of irrigation rice. The data generated for such an estimate are as follows: Investment Land Gross Cost (c/ha) 365,000 Dam / Reservoir 562,500 Pump/ Engine 120,000 Pipeline & accessories 375,000 Canal system 255,000 Years of use for depreciation 25 20 2222 20 20 Assume taxes = 1%; Interest = 2.5%; Insurance = 2% on original costs. Operation Land preparation: 108,000/ha Seed: 80kg/ha @c300/kg Fertilizer: NPK: 10bags/ha @ 19,500/bag Sulphate Ammonia 6 bags/ha @ 15,000/bag Other Agrochemical: Herbicide: 81/ha @c10,500/1 Furadan: 20kg/ha @ 1,950/kg Cymbush: 21/ha @ c18,000/1 Dithane: 5kg/ha @ 7,500/kg Others: $67,000/ha Water: $75,000 per ha Labour: 250 manhours/ha @ c1,500/manhour Repair and maintenance: Dam/Reservoir 1%; Pump/engine 5%; Pipe line & accessories 1%; Canal 5% of original costs Polysacks: 75nos/ha @ C600/unit Other incidentals: 18,000/ha What is the equivalent cost in US$ if US$1.00 $1,100 (1995 rate). 29. What is the annual cost of investment per ha on the land? a) 19,800.00 b) c 23,587.50 c) 34,687.50 d) 46,406.25 30. What is the annual cost of investment per ha on the dam/reservoir? a) 19,800.00 b) 23,587.50 c) 34,687.50 d) 46,406.25 31. What is the annual cost of investment per ha on the pipe and accessories? a) 19,800.00 b) c 23,587.50 c) 34,687.50 d) 46,406.25 32. What is the annual cost of investment per ha on the canal? a) 19,800.00 b) 23,587.50 c) 34,687.50 d) 46,406.25 33. What is the total annual cost of investment per ha? a) 123,587.50 b) c 130,687.50 c) 134,406.25 dlc135 581 75

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Thomson, South Western

22nd Edition

032464020X, 978-0324640205

More Books

Students also viewed these Accounting questions