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Mrs. Teresa is interested in starting a farming business. She is considering venturing into either strawberry farming or onion farming. She has consulted a financial advisor who established probable returns for these two types of farming businesses and the probability of occurring depending on different weather conditions. This information is as shown below: (image)   Required: Using all the appropriate measures advice Mrs. Teresa on the best farming business to venture in. Give a well detailed justification for your answer

Mrs. Teresa is interested in starting a farming business. She is considering venturing into either strawberry farming or onion farming. She has consulted a financial advisor who established probable returns for these two types of farming businesses and the probability of occurring depending on different weather conditions. This information is as shown below: (image)   Required: Using all the appropriate measures advice Mrs. Teresa on the best farming business to venture in. Give a well detailed justification for your answer

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.1.1MBA
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Mrs. Teresa is interested in starting a farming business. She is considering venturing into either
strawberry farming or onion farming. She has consulted a financial advisor who established probable
returns for these two types of farming businesses and the probability of occurring depending on different
weather conditions. This information is as shown below: (image)

 

Required:
Using all the appropriate measures advice Mrs. Teresa on the best farming business to venture in. Give
a well detailed justification for your answer

the Return for Strawberry Return for onion farming in % Weather conditions Probability for weather conditions farming in % Sunny and Dry 0.3 3% -5% Low rainfall 0.2 8% 8% Moderate rainfall 0.3 15% 25% High rainfall 0.1 12% 15% Flooding 0.1 -10% - 4%
Transcribed Image Text:the Return for Strawberry Return for onion farming in % Weather conditions Probability for weather conditions farming in % Sunny and Dry 0.3 3% -5% Low rainfall 0.2 8% 8% Moderate rainfall 0.3 15% 25% High rainfall 0.1 12% 15% Flooding 0.1 -10% - 4%
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