Neco Model Questions Vol1 2019 Agricultural Science Question 17
Practice objective / multiple choice question 17 from the 2019 Neco Model Questions Vol1 Agricultural Science examination.
An extension officer plans a 4‑year training programme for cattle farmers. The programme incurs a fixed cost of N300,000 and a variable cost of N8,000 per participant (paid at the start). Each trained farmer is expected to increase his annual maize yield by 0.3 tons. The market price of maize is N80,000 per ton. Only 50 % of the participants are expected to adopt the new practice. The discount rate is 12 % per year. (i) Determine the smallest whole number of participants required for the programme to have a positive net present value (NPV). (ii) Calculate the NPV when this minimum number of participants is enrolled.
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About This Question
This is Neco Model Questions Vol1 2019 Agricultural Science Question 17. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Agricultural Science examination.
Difficulty level: Hard .
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