Assume the dairy farmer in the previous problem gave his goats away because he made his real fortune from breeding special "cash" cows, which he sells at two different cattle auctions. Suppose at the first auction, he could sell 14,000 mature female cows per year at $94,000 each. Suppose at the more prestigious second auction, he could sell 1,500 prize heifers per year at $159,000 each. The dairy farmer would also like to sell the bulls, but knows they will not command very much money at the second auction; However, he hopes to sell 6,000 bulls per year at $14,500 each at the first auction. Thus, he will have to increase his trips to the first auction and decrease his trips to the second auction. The dairy farmer has determined that selling the bulls should boost his mature cow sales by 1,100 cows per year, but reduce the sales of his heifers by 450 heifers per year. What amour should be used as the annual sales figure when evaluating this project? O $118,850,000 O $186,750,000 O $261,950,000 O $97,400,000 607.000.000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
Question
Question 16
Assume the dairy farmer in the previous problem gave his goats away because he made his real fortune from breeding special "cash" cows, which he sells at two different cattle
auctions. Suppose at the first auction, he could sell 14,000 mature female cows per year at $94,000 each. Suppose at the more prestigious second auction, he could sell 1,500
prize heifers per year at $159,000 each. The dairy farmer would also like to sell the bulls, but knows they will not command very much money at the second auction; However, he
hopes to sell 6,000 bulls per year at $14,500 each at the first auction. Thus, he will have to increase his trips to the first auction and decrease his trips to the second auction. The
dairy farmer has determined that selling the bulls should boost his mature cow sales by 1,100 cows per year, but reduce the sales of his heifers by 450 heifers per year. What amount
should be used as the annual sales figure when evaluating this project?
O $118,850,000
O $186,750,000
O $261,950,000
O $97,400,000
O $87,000,000
Transcribed Image Text:Question 16 Assume the dairy farmer in the previous problem gave his goats away because he made his real fortune from breeding special "cash" cows, which he sells at two different cattle auctions. Suppose at the first auction, he could sell 14,000 mature female cows per year at $94,000 each. Suppose at the more prestigious second auction, he could sell 1,500 prize heifers per year at $159,000 each. The dairy farmer would also like to sell the bulls, but knows they will not command very much money at the second auction; However, he hopes to sell 6,000 bulls per year at $14,500 each at the first auction. Thus, he will have to increase his trips to the first auction and decrease his trips to the second auction. The dairy farmer has determined that selling the bulls should boost his mature cow sales by 1,100 cows per year, but reduce the sales of his heifers by 450 heifers per year. What amount should be used as the annual sales figure when evaluating this project? O $118,850,000 O $186,750,000 O $261,950,000 O $97,400,000 O $87,000,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Knowledge Booster
Valuing Decision
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education