i- 10% P/F A/P 0.9091 A dairy farm has the following cash estimates: • Land price -$1000,000; estimated to last for a very long time cost of buildings and equipment $200,000; estimated to last for 10 years • Operation cost of the farm $3,000 per year Cow raising cost $1,000 per cow per year Cow purchase price $2500 per cow • Average life per cow 5 years Milk production rate 7,000 kg per cow per year Milk selling price $0.70 per kg A/F 1.0000 0.4762 PIG 0.000 0.826 1 1.1000 0.8264 0.5762 2.329 4.378 6.862 3 0.7513 0.4021 0.3021 4 0.6830 0.3155 0.2155 0.6209 0.2638 0.1638 0.2296 0.2054 0.1874 0.1736 0.5645 0.1296 9.684 0.5132 0.1054 12.763 16.029 19.421 0.4665 0.0874 0.4241 0.0736 10 0.3855 0.1627 0.0627 22.891 Using annual worth estimates with an interest rate of 10% per year, determine the number of cows that should be raised in the farm. 5670

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i- 10%
A/P
1.1000
A dairy farm has the following cash estimates:
PIG
0.000
0.826
P/F -
A/F
1.0000
0.9091
Land price $1000,000; estimated to last for a
very long time
cost of buildings and equipment $200,000;
estimated to last for 10 years
• Operation cost of the farm = $3,000 per year
Cow raising cost = $1,000 per cow per year
Cow purchase price $2500 per cow
• Average life per cow = 5 years
Milk production rate 7,000 kg per cow per year
Milk selling price $0.70 per kg
0.5762
0.4762
0.3021
0.8264
0.7513
0.4021
2.329
4.
0.6830
0.3155
0.2155
4.378
0.6209
0.2638
0.1638
6.862
0.5645
0.2296
0.1296
9.684
0.5132
0.2054
0.1054
12.763
0.4665
0.1874
0.0874
16.029
0.4241
0.1736
0.0736
19.421
10
0.3855
0.1627
0.0627
22.891
Using annual worth estimates with an interest rate of 10% per year, determine the number of cows that
should be raised in the farm.
2/3
6789
Transcribed Image Text:i- 10% A/P 1.1000 A dairy farm has the following cash estimates: PIG 0.000 0.826 P/F - A/F 1.0000 0.9091 Land price $1000,000; estimated to last for a very long time cost of buildings and equipment $200,000; estimated to last for 10 years • Operation cost of the farm = $3,000 per year Cow raising cost = $1,000 per cow per year Cow purchase price $2500 per cow • Average life per cow = 5 years Milk production rate 7,000 kg per cow per year Milk selling price $0.70 per kg 0.5762 0.4762 0.3021 0.8264 0.7513 0.4021 2.329 4. 0.6830 0.3155 0.2155 4.378 0.6209 0.2638 0.1638 6.862 0.5645 0.2296 0.1296 9.684 0.5132 0.2054 0.1054 12.763 0.4665 0.1874 0.0874 16.029 0.4241 0.1736 0.0736 19.421 10 0.3855 0.1627 0.0627 22.891 Using annual worth estimates with an interest rate of 10% per year, determine the number of cows that should be raised in the farm. 2/3 6789
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