Gce Model Questions Vol1 2018 Agricultural Science Question 13

An agricultural extension programme introduces a high‑yield maize variety. The cost to each farmer is ₦12 000 (training and seed subsidy). The variety is expected to increase yield by \(1.5\) t ha⁻¹. The market price of maize is ₦2 500 t⁻¹ and each farmer cultivates \(2\) ha. Adoption among farmers follows the logistic curve\n\[p(t)=\frac{1}{1+e^{-0.8\,(t-3)}},\]\nwhere \(p(t)\) is the proportion of farmers that have adopted by year \(t\) (years 1-5). Benefits accrue only after adoption and are realised each year. The discount rate is \(10\%\) per annum.\nCalculate the net present value (NPV) per farmer of the programme over the five‑year horizon. State whether the NPV is positive or negative (round to the nearest naira).