Farmer brown is planning to plant one of two types of


Farmer Brown is planning to plant one of two types of alfalfa seed. The more expensive of the two will produce higher yields over a 3-year period. The opportunity cost of capital is 12 percent. He has calculated the following after-tax net cash flows: Year Select Seed Cheap Seed 0 -$4,000 -$840 1 3,000 630 2 2,000 630 3 1,000 420 What do you recommend? Why?

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Financial Management: Farmer brown is planning to plant one of two types of
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