ECON 301 Final: ECON 300 IA State FinalExam.Key
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Put a square around your second choice if you want. Half-credit is given for second choice, no penalty: assume that you are preparing an enterprise budget to evaluate the profitability of feeding yearling beef steers from 750 pounds to 1,250 pounds. You place an opportunity cost on all required inputs and resources. Price (pcp: the difference between the national average market price and the national. Target price: the difference between the local posted elevator price and the national target. You estimate that this new planter will allow you to plant the crop in less time (plant more acres per day with fewer break downs) and increase average crop yields. You have also already estimated the net cash flow for each year you plan to own and operate the new planter (see below). Note: assume that the planter has zero salvage value to keep the analysis simple! See attached table 4 for appropriate factors. (6 pts. )
