The use of historical-cost depreciation in periods of persistent inflation decreases the present value of depreciation deductions, thus understating the true economic cost of capital and increasing the real after-tax rate of return required by potential investors. Efforts to correct these...

This paper analyzes the economnic feasibility of an investment designed to digest anaerobically cage layer manure and convert biogas into electricity which is sold to a public utility. A simulation model is used to calculate the aftertax net present value (NPV) of a digestion system for eight...

The use of hedging with commodity- futures markets to reduce the price risk in corn production is examined. Both intra-year and inter-year risk are evaluated with different hedging strategies. Strategies involve no hedge, hedge and hold, controlled hedge placement and hold, and in and out...