Problem: You have been contracted by the Tono irrigation project to do cost analysis for the...

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Problem: You have been contracted by the Tono irrigation project to do cost analysis for the production of irrigation rice. The data generated for such an estimate are as follows: Years of use for depreciation Investment Land Dam / Reservoir Pump/Engine Pipeline & accessories Canal system Gross Cost (C/ ha) 365,000 562,500 120,000 375,000 255,000 Assume taxes = 1%; Interest = 2.5% ; Insurance = 2% on original costs. Operation Land preparation: €108,000/ha Seed: 80kg/ha @ 300/kg Fertilizer: NPK: 10bags/ha @ c19,500/bag Sulphate Ammonia ¢ 6 bags/ha @ 15,000/bag Other Agrochemical: Herbicide: 81/ha @ c10,500/1 Furadan: 20kg/ha @c1,950/kg Cymbush: 21/ha @ c18,000/1 Dithane: 5kg/ha @c7,500/kg Others: €67,000/ha Water: €75,000 per ha Labour: 250 manhours/ha @ $1,500/manhour Repair and maintenance: Dam/Reservoir 1%; Pump/engine 5%; 25 20 20 20 Pipe line & accessories 1%; Canal 5% of original costs Polysacks: 75nos/ha @ c600/unit Other incidentals: €18,000/ha What is the equivalent cost in US$ if US$1.00 = $1,100 (1995 rate). 34. What is the annual cost of operation per ha on seed procurement? a) ¢ 19,800.00 b) € 24,000.00 c) € 285,000.00 d) € 375,000.00 35. What is the annual cost of operation per ha on fertilizer procurement? a) € 19,800.00 b) € 24,000.00 SK Agodzo TUTORIALS c) € 285,000.00 d) € 375,000.00 36. What is the annual cost of operation per ha on labour? a) € 19,800.00 b) € 24,000.00 c) € 285,000.00 d) € 375,000.00 37. What is the annual cost of operation per ha on repair and maintenance? a) € 28,125.00 b) € 37,500.00 c) € 45,000.00 d) € 75,000.00 38. What is the total annual cost of operation per ha? a) € 1,108,000.00 b) € 1,221,625.00 c) € 1,134,687.50 d) € 1,146,406.25 IRRIGATION AND DRAINAGE 39. What is the total annual irrigation cost on investment and operation per ha? a) 1,118,000.00 b) c 1,221,625.00 c) € 1,357,206.25 d) c 1,446,406.25 Page 6 Problem: You have been contracted by the Tono irrigation project to do cost analysis for the production of irrigation rice. The data generated for such an estimate are as follows: Years of use for depreciation Investment Land Dam / Reservoir Pump/Engine Pipeline & accessories Canal system Gross Cost (C/ ha) 365,000 562,500 120,000 375,000 255,000 Assume taxes = 1%; Interest = 2.5% ; Insurance = 2% on original costs. Operation Land preparation: €108,000/ha Seed: 80kg/ha @ 300/kg Fertilizer: NPK: 10bags/ha @ c19,500/bag Sulphate Ammonia ¢ 6 bags/ha @ 15,000/bag Other Agrochemical: Herbicide: 81/ha @ c10,500/1 Furadan: 20kg/ha @c1,950/kg Cymbush: 21/ha @ c18,000/1 Dithane: 5kg/ha @c7,500/kg Others: €67,000/ha Water: €75,000 per ha Labour: 250 manhours/ha @ $1,500/manhour Repair and maintenance: Dam/Reservoir 1%; Pump/engine 5%; 25 20 20 20 Pipe line & accessories 1%; Canal 5% of original costs Polysacks: 75nos/ha @ c600/unit Other incidentals: €18,000/ha What is the equivalent cost in US$ if US$1.00 = $1,100 (1995 rate). 34. What is the annual cost of operation per ha on seed procurement? a) ¢ 19,800.00 b) € 24,000.00 c) € 285,000.00 d) € 375,000.00 35. What is the annual cost of operation per ha on fertilizer procurement? a) € 19,800.00 b) € 24,000.00 SK Agodzo TUTORIALS c) € 285,000.00 d) € 375,000.00 36. What is the annual cost of operation per ha on labour? a) € 19,800.00 b) € 24,000.00 c) € 285,000.00 d) € 375,000.00 37. What is the annual cost of operation per ha on repair and maintenance? a) € 28,125.00 b) € 37,500.00 c) € 45,000.00 d) € 75,000.00 38. What is the total annual cost of operation per ha? a) € 1,108,000.00 b) € 1,221,625.00 c) € 1,134,687.50 d) € 1,146,406.25 IRRIGATION AND DRAINAGE 39. What is the total annual irrigation cost on investment and operation per ha? a) 1,118,000.00 b) c 1,221,625.00 c) € 1,357,206.25 d) c 1,446,406.25 Page 6

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To calculate the equivalent cost in US dollars and answer each question well need to break down the calculations step by step First well convert the costs from Cedis to US dollars using the given exch... View the full answer