Neco Model Questions Vol1 2025 Agricultural Science Question 33
Practice objective / multiple choice question 33 from the 2025 Neco Model Questions Vol1 Agricultural Science examination.
A farmer is considering installing a drip‑irrigation system on a 2‑ha vegetable farm. The system costs ₦3 600 000, has a useful life of 5 years and a salvage value of ₦600 000 at the end of year 5. It reduces water use by 40 % and raises the yield of each crop cycle by 25 %. The farmer grows tomatoes, harvesting twice a year. Current yield per cycle is 10 t ha⁻¹, market price is ₦150 kg⁻¹, and water consumption per cycle is 5 000 L ha⁻¹. Water costs ₦30 per 1 000 L. The discount rate is 10 % per annum. Assuming no other cost changes, calculate the net present value (NPV) of the investment over the 5‑year period. Is the investment financially viable (NPV > 0)?
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This is Neco Model Questions Vol1 2025 Agricultural Science Question 33. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Agricultural Science examination.
Difficulty level: Hard .
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