Agriculture Reference
In-Depth Information
Plate 13.3
Applicator
Capital equipment, like this applicator, generates profi t for the agribusiness over time. Photo
courtesy of USDA Natural Resources Conservation Service.
Table 13.5
Self-propelled fertilizer applicator simple rate of return
calculations
Year
Net Cash Flow Before
Depreciation (dollars)
Depreciation (dollars)
1
150,000
60,000
2
148,000
60,000
3
146,000
60,000
4
144,000
60,000
5
158,000
60,000
Total
746,000
300,000
Average
149,200
60,000
AverageInvestment
$
$
150 000
=
=
,
,
Av
eNet Cash Flow
−
AverageDepreciation
erag
e
Simple Rate of Return
=
Average Investment
$149
200
,
$
60 000
000
=
=
,
59
%
$,
150
