Understanding Investment Analysis for Farm Management

Investment decisions are among the most important decisions growers make. In many cases, those investments are in capital assets such as establishing a new orchard or purchasing a new piece of equipment. The process for evaluating those investments is called investment analysis or capital budgeting...

Full description

Saved in:
Bibliographic Details
Main Authors: Julio Cruz, Ariel Singerman
Format: Article
Language:English
Published: The University of Florida George A. Smathers Libraries 2019-08-01
Series:EDIS
Subjects:
Online Access:https://journals.flvc.org/edis/article/view/109156
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Investment decisions are among the most important decisions growers make. In many cases, those investments are in capital assets such as establishing a new orchard or purchasing a new piece of equipment. The process for evaluating those investments is called investment analysis or capital budgeting. This 4-page fact sheet written by Julio Cruz and Ariel Singerman and published by the UF/IFAS Food and Resource Economics Department reviews net present value and the internal rate of return, the two main criteria for decision making when evaluating a decision to invest in a capital asset. https://edis.ifas.ufl.edu/fe1060
ISSN:2576-0009