Jill runs a major farm business and is considering buying a nearby farm that is virtually identical to the current property. To decide whether to proceed, should Jill do a ‘whole farm budget’, which...

Jill runs a major farm business and is considering buying a nearby farm that is virtually identical to the current property. To decide whether to proceed, should Jill do a ‘whole farm budget’, which has all the  costs and returns of both properties combined?

Should the irrigation manager put on a total of 80 mm over the season?

The returns to more and more irrigation are given below. The cost of applying each additional mm of water is $1.75. If no water is applied the return

is $300/ha, for 20 mm it is $320, for 40 mm it is $370, for 60 mm it is

$410, for 80 mm it is $425, for 100 mm it is $430 and for 120 mm it is

$418/ha.