PLEASE PLEASE HELP FAST DUE TOMORROW!!!!! (60 points)

Help Aniyah Make Her Decision

Aniyah owns a large farm where she grows grains, fruits, and vegetables and raises livestock, or animals used to make money, which on this farm includes dairy cows raised for milk and chickens raised for their eggs. Currently, Aniyah’s farm covers about 352 acres. She uses 36 acres for 20 cows, 100 acres for planting corn, 100 acres for planting wheat, 100 acres for soybeans, 5 acres for peach trees, and she keeps 10 acres set aside where 30 sheep graze. Aniyah also has about 40 free range chickens on one of her acres.


Aniyah is planning her business’s finances and needs to know how much money she can expect to bring in this year. Gross profit refers to the money that is made before any of her expenses (like animal food, fertilizer, irrigation costs, or harvesting equipment) are subtracted.


Using the chart, calculate the gross profit that Aniyah can expect to make from her crops and animals in one year.


TABLE 1 Gross profit calculation

Crop


Yield


Market Price


Gross Profit


20 cows (milk)


50,000 gallons


$2.50 per gallon


30 sheep (wool)


900 pounds


$3.50 per pound


40 chickens (eggs)


1,023 dozen


$2.96 per dozen


100 acres corn


13,000 bushels


$3.48 per bushel


100 acres wheat


3,700 bushels


$9.23 per bushel


100 acres soybeans


6,600 bushels


$4.00 per bushel


5 acres peaches


2,700 bushels


$28.00 per bushel


Total Gross Profit


Like we said, this gross profit is calculated before Aniyah’s expenses. Taking Aniyah’s expenses into account, calculate her net profit, or “take home pay;” that is, her gross profit minus her expenses.


TABLE 2 Net profit calculation

Gross Profit


Expenses


- $197,500


Net Profit


Aniyah wants to see if she can make her farm a bit more energy-efficient, in order to save money and perhaps help the environment. Just the dairy section of her farm alone costs a huge amount of money in order to run. She contacts Stephen, a renewable energy consultant, to see if he has any suggestions for her to make her farm more energy-efficient.


Stephen looks over two options that are available in Aniyah’s area. He offers the following two suggestions:


Option 1

Aniyah could install a wind turbine on her property. This would cost her $48,000 to install but would save her about $20,000 per year in electricity costs.


Stephen points out that a wind turbine would not pollute the air like the power plants do to make energy. He also notes that many times wind power plants make rent payments to the farmer or rancher for the use of the land, providing landowners with additional income.


Option 2

Aniyah could replace the irrigation pumps for her fields. This would cost her $24,000 to do but would save her about $6,000 per year in electricity costs.


Stephen explains that about 25 percent of the electrical energy used for Aniyah’s irrigation was being wasted due to poor pump and motor efficiency. By replacing these pumps, Aniyah’s crops could be watered in a much more efficient fashion.


Aniyah wants to save money, but she also wants to make sure that none of the changes she makes will affect the crops she produces and, in turn, the health of her customers. She contacts Siobhan, who is an expert in biotechnology, to help her understand what effects wind turbines or irrigation pumps might have on her crops.


Siobhan looks over Aniyah’s current farming output and after studying some soil samples from Aniyah’s farm, finds that because Aniyah’s irrigation pumps are not working properly, her soil has become eroded. The corn, soybean, and wheat produced do not contain as much potassium as they could if the soil was in better shape. She explains that Aniyah’s customers would have healthier vegetables if she put in new irrigation pumps. Siobhan also estimates that Aniyah’s fields would yield 10 percent more crops if the soil was healthier.


On the other hand, Siobhan discusses how clean wind energy will make the air healthier for her cows and chickens to breathe. Even the grass that the livestock eat would be cleaner if it got its nutrients without absorbing bad gasses put out by the power plants. Healthier animals would cost Aniyah 13 percent less in vet costs. Siobhan says that because Aniyah has free range chickens, their eggs are already healthier than those farmed in traditional chicken houses. The use of wind power would be another way for Aniyah to show her customers that she wants to produce the healthiest dairy products she can for them.


This is a lot of information for Aniyah to think about! Let’s help her make her decision. Draw up a PowerPoint to present Aniyah with these two options.