Hypothetically, it costs $400 to establish one hectare of agroforestry alley cropping system, $80 to prune...

 

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Hypothetically, it costs $400 to establish one hectare of agroforestry alley cropping system, $80 to prune at year 10. A farmer would earn $300 (net) from partial harvest at year 20 and earn $3,000 from final harvest at year 30. a) If the discount rate (r) is 6%, calculate NPV. Is the project worthwhile, based on this discount rate? (7 marks) Hypothetically, it costs $400 to establish one hectare of agroforestry alley cropping system, $80 to prune at year 10. A farmer would earn $300 (net) from partial harvest at year 20 and earn $3,000 from final harvest at year 30. a) If the discount rate (r) is 6%, calculate NPV. Is the project worthwhile, based on this discount rate? (7 marks)

Answer rating: 100% (QA)

To calculate the Net Present Value NPV of the agroforestry alley cropping system project we need to ... View the full answer