Waec Model Questions Vol1 2022 Agricultural Science Question 15

Practice objective / multiple choice question 15 from the 2022 Waec Model Questions Vol1 Agricultural Science examination.

Waec Model Questions Vol1 2022 Agricultural Science Objective / Multiple Choice Hard Difficulty
Question 15 WAEC_MODEL_QUESTIONS_VOL1 • 2022 • AGRICULTURAL_SCIENCE • objective

A farmer plans to invest in a small poultry unit. Fixed costs (building, equipment) total ₦150,000. Variable cost per bird per year (feed, medicine, labour) is ₦12,000. The farmer expects to raise 200 birds each year for 5 years. At the end of 5 years the equipment can be sold for a salvage value of ₦30,000. Assuming a discount rate of 10 % per annum, calculate the minimum average selling price per bird (in naira) that the farmer must achieve each year to obtain a net present value (NPV) of zero for the project.

Answer Options

A. 12800
Correct Answer B. 12174
C. 13500
D. 11500
Correct Answer
B
Correct Option:
12174

About This Question

This is Waec Model Questions Vol1 2022 Agricultural Science Question 15. It is one of the objective questions from the 2022 Waec Model Questions Vol1 Agricultural Science examination.

Difficulty level: Hard .

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