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.
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.
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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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