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.
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.
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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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