A farmer is deciding which vegetables to plant on his 5 hectare farm. The maximum land...

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A farmer is deciding which vegetables to plant on his 5 hectare farm. The maximum land that can be used for each vegetable and the net present value for each vegetable are listed in the table below: Vegetable Beet Gourds Rutabaga Yam Maximum farm land (hectares) 2.45 2.1 1.6 1.2 NPV ($ million) 3.185 3.78 3.68 2.88 Part A: Assume that all of the farmer's customers are all located within a 5 kilometer radius of the farm and, therefore, have limited demand. Further, assume that farmer may use any amount. of land up to the maximum listed in the table above and receive a proportional percent of the cash flow. But, any use of the land above the maximum exceeds demand by customers and the resulting vegetables cannot be sold. What is the total NPV from the best allocation of vegetables in millions of dollars? million (Round your final answer to 2 decimal places) Part B: Now assume that the farmer has an arch-nemesis with an identical farm and vegetable opportunities (i.e., vegportunities). However, the nemesis is a sell-out who sells only to corporate clients. These clients will only purchase produce quantities that arise from using the maximum farm land available. They will not purchase any produce produce from using partial acreage. What is the total NPV from the best allocation of vegetables for the arch-nemesis in millions of dollars? million A farmer is deciding which vegetables to plant on his 5 hectare farm. The maximum land that can be used for each vegetable and the net present value for each vegetable are listed in the table below: Vegetable Beet Gourds Rutabaga Yam Maximum farm land (hectares) 2.45 2.1 1.6 1.2 NPV ($ million) 3.185 3.78 3.68 2.88 Part A: Assume that all of the farmer's customers are all located within a 5 kilometer radius of the farm and, therefore, have limited demand. Further, assume that farmer may use any amount. of land up to the maximum listed in the table above and receive a proportional percent of the cash flow. But, any use of the land above the maximum exceeds demand by customers and the resulting vegetables cannot be sold. What is the total NPV from the best allocation of vegetables in millions of dollars? million (Round your final answer to 2 decimal places) Part B: Now assume that the farmer has an arch-nemesis with an identical farm and vegetable opportunities (i.e., vegportunities). However, the nemesis is a sell-out who sells only to corporate clients. These clients will only purchase produce quantities that arise from using the maximum farm land available. They will not purchase any produce produce from using partial acreage. What is the total NPV from the best allocation of vegetables for the arch-nemesis in millions of dollars? million

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SOLUTION To determine the best allocation of vegetables in terms of total NPV we need to calculate t... View the full answer