ibps-so 2016 · Question 381 of 394

The repayment schedule of the coconut plantation loan referred to earlier has now to be xed, and the eld o cer must record the period over which the garden will bear pro tably, as distinct from the total span of life of the palm. He notes that a tall palm planted from a good seed nut comes into bearing in the seventh or eighth year, rises to full bearing by about the fteenth, holds that yield for a long stretch of years and then declines, after which the nut yield no longer covers the cost of climbing, manuring and plant protection and the palm is felled for timber. The repayment of the term loan, including the instalments of the gestation period, has to be completed well within that bearing period, so the gure entered in the appraisal settles the maximum tenure that may be allowed. The economic life of the coconut palm is about

1. A10 years
2. B20 years
3. C30 years
4. D40 yearsCorrect
5. E60 years