Neco 2017 Agricultural Science Question 22

Practice objective / multiple choice question 22 from the 2017 Neco Agricultural Science examination.

Neco 2017 Agricultural Science Objective / Multiple Choice Hard Difficulty
Question 22 NECO • 2017 • AGRICULTURAL_SCIENCE • objective

A teak plantation is established at a spacing that gives \(2,500\) seedlings per hectare. After \(20\) years the average timber volume is \(120\ \text{m}^3/\text{ha}\). The market price is \(\text{₦}30,000\) per \(\text{m}^3\) and the total cost of planting and maintenance over the rotation is \(\text{₦}1,200,000\) per hectare. Assuming a discount rate of \(8\%\) per annum, determine the present value of the net revenue per hectare. Based on a required rate of return of \(10\%\), should the farmer adopt this plantation?

Answer Options

Correct Answer A. Approximately \text{₦}514,000; Yes, adopt
B. Approximately \text{₦}450,000; Yes, adopt
C. Approximately \text{₦}600,000; No, reject
D. Approximately \text{₦}514,000; No, reject
Correct Answer
A
Correct Option:
Approximately \text{₦}514,000; Yes, adopt

About This Question

This is Neco 2017 Agricultural Science Question 22. It is one of the objective questions from the 2017 Neco Agricultural Science examination.

Difficulty level: Hard .

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