Question: Suppose that the seasonal yields and the market wheat, corn and sugar beets contingent on the weather condition are given by:

Also assume that the annual interest rate is 8% and the probability of observing Dry, Wet, or Normal weather conditions are 20%, 50%, and 30%, respectively. Calculate the expected present value of net benefits and explain which crop should be planted

[hint the costs will occur at the beginning and the revenues at the end of a season].

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document