Determine the benefit cost ratio for mango farm at rotation age of 7years given the following 1. At the rotation age, the expected yield is 221 cubic meter per hectare 2. Stumpage price is $100/m³ 3. Total land area is 250 hectares 4. Plantation establishment cost which is assumed to be incurred at yield 2021 is $3,500 per hectare 5. Weeding cost at year 1 is $200 per hectare 6. Fertilizing cost incurred at year 2 is $200 per hectare per year 7. Interest rate is assumed to be 18%

Determine the benefit cost ratio for mango farm at rotation age of 7years given the following 1. At the rotation age, the expected yield is 221 cubic meter per hectare 2. Stumpage price is $100/m³ 3. Total land area is 250 hectares 4. Plantation establishment cost which is assumed to be incurred at yield 2021 is $3,500 per hectare 5. Weeding cost at year 1 is $200 per hectare 6. Fertilizing cost incurred at year 2 is $200 per hectare per year 7. Interest rate is assumed to be 18%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5EA: If a garden center is considering the purchase of a new tractor with an initial investment cost of...

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