Question: use excel to find answer please and show work Problem 3: You have just graduated from college and want to start your own farm. You
Problem 3: You have just graduated from college and want to start your own farm. You have three potential options: (1) a cow/calf operation, (2) grow your own crops, or (3) a feed lot where you finish cattle. All three require an investment of $100,000. The resulting profits for each option are: Option 1 Option 3 Option 2 $45 000 $15 000 $30 000 Year 1 Year 2 20 000 40 000 30 000 30 000 35 000 30 000 Year 3 Year 4 Year 5 35 000 15 000 30 000 55 000 15 000 30 000 The required-rate-of-return for the investment is 8%. Which option would you choose using the a, simple-rate-of-return method? b. payback period method? c. net present value method? IRR
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