Neco Model Questions Vol1 2022 Agricultural Science Question 21

Practice objective / multiple choice question 21 from the 2022 Neco Model Questions Vol1 Agricultural Science examination.

Neco Model Questions Vol1 2022 Agricultural Science Objective / Multiple Choice Hard Difficulty
Question 21 NECO_MODEL_QUESTIONS_VOL1 • 2022 • AGRICULTURAL_SCIENCE • objective

An agricultural extension programme plans to train 50 farmers. The programme has a fixed overhead cost of ₦150,000 and a variable cost of ₦20 per farmer trained. Each farmer's baseline yield is 2,000 kg and the market price is ₦120 per kg. Adoption of the new technology is expected to increase yield by \(15\%\) for a farmer, but only \(60\%\) of the trained farmers are expected to adopt it. The benefits from the increased yield are realised each year for three years after training. Using a discount rate of \(10\%\) per annum, calculate the net present value (NPV) of the programme.

Answer Options

A. 2120000
B. 2034800
Correct Answer C. 2534800
D. 2845600
Correct Answer
C
Correct Option:
2534800

About This Question

This is Neco Model Questions Vol1 2022 Agricultural Science Question 21. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Agricultural Science examination.

Difficulty level: Hard .

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