Problem 1 Farmers sometimes store their grain and wait to sell at a later date if they think market prices will increase. If they are accurate in their forecasts, this can be a profitable strategy. Let's look at an example and determine the best course of action for Farmer Jones. Farmer Jones just harvested 80,000 bushels of wheat that he currently has in grain bins on his farm. He considered selling this year's harvest but the current market price is bushel. He strongly believes that one year from now, wheat prices will be at least $8.00 a bushel. only $6.50 a Q1. Assuming a 5 % interest cost what should Farmer Jones do with this year's harvest? 02. What happens if Farmer Jones has 10 % of his wheat spoil while in storage? Problem 2 In 1867, the United States bought the Alaska territory from Russia at the urging of Secretary of State William H. Seward. The Russian government needed cash and feared the territory might eventually be lost due to conflict or encroachment. The area of more than 580,000 square miles eventually became the state of Alaska in 1959. However Seward received a tremendous amount of criticism for championing and negotiating the $7.2 million purchase which was dubbed Seward's folly by numerous detractors In hindsight it appears the natural resource-rich region was a good buy. But how much did we pay for it in today's dollars? (Assume we are in 2012 today) 1. What is today's equivalent purchase price for Alaska assuming a 3% fate of inflation? 2. What is today's equivalent purchase price for Alaska assuming a 4 % rate of inflation? Submission status w 1217 PM 6/17/2019 Op des