Agribusiness project appraisal and evaluation UE Past Papers Questions.

The farmers specialized in pig farming has two options (i) and (ii)

1. To sale the recently born 12 piglets each at 25,000Tshs now or
2. To fatten the piglets and sell after 12 months each 50,000 Tshs. (Assuming fattening costs 30,000 , other costs, 5,000 per fattener. Also during the period each piglet will produce 100 kg of manure to be sold at Tshs 50 per kg to nearby farmer). Assit him to make right decision if the interest rate is 25%.

Answer / Solution

UNSOLVED

Suppose someone offers you the following financial contract. If you deposit 10000 US$ with him, he promise to pay you 2800 annually for 6 years. Using 15% interest rate will you accept this proposal? why?

Answer / Solution

UNSOLVED

Calculate the value five years hence of a deposit of US$ 15000 made today if the interest rate is

1. 6%
2. 12%
3. 16%
4. 20%

Answer / Solution

UNSOLVED

If you deposit $5000 today at 12% interest rate, in how many years (roughly) will the amount grow to $60,000.

Answer / Solution

UNSOLVED

At the time of retirement Mr X is given a choice  between two alternatives

1. an annual pension of $17,000 as long as he lives and
2. a lump sum amount of $50,000.

If this X expects to live for 15 years and interest rate is 12%, which option to be more attractive.

Answer / Solution

UNSOLVED