Even complicated and confusing topics will be easily developed and covered if you request our help writing an essay. Place an order today!

Due Monday, December 7, 2015, answer on separate sheet of paper and attach the hand done worksheet and the two printoutsof the spread sheet calculations.


The investment question is? Should a farmer invest in and operate a 50,000 bushel grain drying and storage facility? The cost of the facility is $85,000. The economic life is about ten years. The salvage value is expected to be about $13,000. In a partial budgeting framework, one must compare the added cost per year, to the savings of eliminating the elevator charges each year.The elevator charge for drying and storage has averaged $0.55 per bushel the past few years, so the first year savings is expected to be $27,500. The farmer expects that the total elevator charge will go up about $100/yr. The operating costs of the new facility are expected to be $0.30/bu, and the repairs, insurance and taxes are expected to be an additional $800.00 a year. As the facility gets older the repair costs are expected to increase yearly as can be seen in the cost numbers below. While I have given you the costs and savings by year below, you should figure out how they were derived from the above numbers. The real interest rate is assumed to be 2%, inflation is expected to be 2% annually, and the risk factor is expected to be 3%.




Year 1



Year 2



Year 3



Year 4



Year 5



Year 6



Year 7



Year 8



Year 9



Year 10




1. Explain how the Year 1 and 2 savings and costs were calculated.

2. Using the Homework 9 NPV Spreadsheet on Angel right under Homework 9, go to Sheet 5 at bottom left, print off andcomplete 0-2 years by hand and turn in with HW.

3 Than using the Homework 9 NPV Spreadsheet (Sheet 4 at bottom left), do the necessary calculations to determine if the farmer should make the investment. Print off and turn in.

4 Explain why the farmer should or should not invest in the facility.

5 Would the answer change if the real interest rate is assumed to be 4%, inflation is expected to be 2% annually, and the risk factor is expected to be 3%. Why? Do a second spreadsheet.

testimonials icon
"Understanding and Analyzing Arguments" Please respond to the following:Use the Internet to search an example of an enthymeme...
testimonials icon
Describe three unique features of PubMed database that sets this database apart from other evidence-based search engines.Com...
testimonials icon
Consider the entrepreneurial opportunity to franchise Ziggi's Coffee. Write a two page financial plan for the opportunity. Actual amou...
testimonials icon
Running Head: COLLEGE TRANSFORMATION GEOMETRYCollege Transformation GeometryNameInstructorCourseDate1COLLEGE TRANSFORMATION GEOMETRYQuestion 3.1Quest...
testimonials icon
Please write 300 - 500 words answering the following question:-Is ethical consumption under capitalism possible in the long term an...
testimonials icon
TaskCreate a database design specification (Enhanced Entity Relationship Diagram (EERD) and Relational Data Model (RDM)) from the...
testimonials icon
Your assignment is to prepare and submit a paper on mosques as an integral part of the islamic religion. It is usually on Fridays and Special Musli...
testimonials icon
Assignment 2: Dropbox AssignmentCourse Project: Long-Term Care Facilities I ...
testimonials icon
The book groups climates into five primary categories. Briefly describe them and answer all of the following: In what latitudinal zonedo th...
testimonials icon
Running head: SCALING NEW HEIGHTSScaling New HeightsStudent NameInstitution Affiliation1SCALING NEW HEIGHTS2King Abdullah Scholarship ProgramKing Abd...
testimonials icon
Which of the following is true of both defensive and offensive modes? both are appropriate for an interior attack, defensive mode always occurs...
testimonials icon
Provide examples of an individual with a dual diagnosis.In responding to your peers, discuss your opinion on which diagnosis would be most c...

Other samples, services and questions:

Calculate Price

When you use PaperHelp, you save one valuable — TIME

You can spend it for more important things than paper writing.

Approx. price
Order a paper. Study better. Sleep tight. Calculate Price!
Created with Sketch.
Calculate Price
Approx. price