Question: A dairy farmer currently operating a 1 0 0 - cow herd is considering expanding his herd size by an additional 5 0 cows. The
A dairy farmer currently operating a cow herd is considering expanding his herd size by an additional cows. The expansion will require the purchase of cows, building renovations, and acquisition of additional equipment. Operating revenues come primarily from milk sales. Here are the details. Planning Horizon years Capital structure, debt to asset debt cost equity cost income tax rate annual growthinflation rate cows price per cow $ building renovations $ equipment $ terminal value equipment $ annual depreciation straight line change in revenue, year $ change in expenses, year $ change in working capital $ Create a model in Excel, find NPV find IRR, find MIRR, find PI
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