IDEAS home Printed from https://ideas.repec.org/p/ags/uersmp/320648.html
   My bibliography  Save this paper

Evaluation of Investment Opportunities: Tools for Decisionmaking in Farming and Other Businesses

Author

Listed:
  • Walrath, Arthur J.

Abstract

Report Introduction: A manager constantly faces choices among ways to use his capital. Should he invest his limited capital in enlarging his inventory or invest it in more land improvements? Here, he can visualize the possibility of greater percentage returns in the shortrun if he uses his capital for more stock. Or, should he incur the costs of planting trees and fencing an area? Here, he realizes there will be no return for 10 or 20 or more years. The return could even go to others. Or, should he buy additional fertilizer? Here, he can usually visualize increased production the first year and possibly some increase over the next several crop years. Or, he might face the question of when he should sell: today at a given price or 10 years hence for some unknown price? In such problems as well as many others, present values and estimated future values are involved. This handbook presents this complex subject of analysis of present and future values in such a manner as to make it useful for normal business operations. Relatively simple problems are discussed in this report. A thorough understanding of the formulas used to solve these problems is important since they also apply to some of the more complex problems with which business managers might be concerned.

Suggested Citation

  • Walrath, Arthur J., 1977. "Evaluation of Investment Opportunities: Tools for Decisionmaking in Farming and Other Businesses," Miscellaneous Publications 320648, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersmp:320648
    DOI: 10.22004/ag.econ.320648
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/320648/files/ah349rev.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.320648?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uersmp:320648. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ersgvus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.