Waec Model Questions Vol1 2020 Agricultural Science Question 5
Practice objective / multiple choice question 5 from the 2020 Waec Model Questions Vol1 Agricultural Science examination.
A vegetable farmer is considering installing a drip‑irrigation system on a 2 ha farm. The system costs ₦1,200,000 upfront and has a 10‑year life with no salvage value. It reduces water use by 30 % and raises annual crop yield by 25 %. Currently, the farm generates ₦3,600,000 of revenue per year and incurs ₦1,800,000 of variable costs (excluding water). Water consumption is 12 000 m³ per year, and water is charged at ₦150 per 1 000 L. The discount rate is 12 % per annum. Calculate the net present value (NPV) of the investment. Should the farmer adopt the drip system? (Give the NPV in ₦, rounded to the nearest thousand.)
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About This Question
This is Waec Model Questions Vol1 2020 Agricultural Science Question 5. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Agricultural Science examination.
Difficulty level: Hard .
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