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# Class Note for EconS 350 with Professor Painter at WSU 04

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COURSE
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TYPE
Class Notes
PAGES
6
WORDS
KARMA
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This 6 page Class Notes was uploaded by an elite notetaker on Friday February 6, 2015. The Class Notes belongs to a course at Washington State University taught by a professor in Fall. Since its upload, it has received 20 views.

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Date Created: 02/06/15
Exam on October 31 4 I 105 points 15 Mult Choice 30 pts Partial Budgeting 15 pts WholeFarm Budgeting 15 pts Time Value of Money 15 pts Multiperiod Enterprise Budgeting 15 pts Investment Analysis 10 pts Internal Rate of Return 5 pts Multiperiod Enterprise Budgeting Producing a crop thatquot takes more than one growing season requires accounting for the time value of money Allocate the costs required to establish the productive crop across all years of production Amortize equal payments of principal interest production costs as a fixed cost 7 Multiper iod Enterprise Budgeting Examples Summer fallow preceding winter wheat Total costs of producing summer39fallow multiplied by the cost of capital interest 1 rate are added to winter wheat production costs Simple interest is used as it sjust one period eg 1 09production costs Multiper iod Enterprise Budgeting Examples Alfalfa production Total costs of establishing alfalfa are allocated to each year of full production Multiply total costs by the amortization factoror use another method to determine the payment each year 11 Establishment costs are a fixed cost item Multiperiod Enterprise Budgeting Examples Orchards vineyards 7 Total costs of establishing the trees or vines are allocated to each year of full production For multiple establishment years no production compounded until fully established Again multiply total costs by the amortization factor or use another method to determine the payment each year of full production Establishment costs area fixed cost item f for more than one year establishment costs

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