Present Value Excel Template 46472 | B1 74netpresentvalueofbeefreplacementfemales

Partial file snippet.

Sheet 1: Example

	
	
	
	
	
	
		

		

		Net Present Value of Beef Replacement Females
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Ag Decision Maker -- Iowa State University Extension and Outreach
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		For more information see File B1-74, Net Present Value of Beef Replacement Females
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Place the cursor over cells with red triangles to read comments.
		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Enter your input values in shaded cells. If zero, enter 0.
		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Clear your input values if cells NOT shaded.
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Purchase and Financing
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Purchase price of replacement female, $/head
		

		

		
		Enter the purchase price of the replacement female. If the replacement female is being retained from within the herd, an opportunity cost is involved with retaining that female, thus, it is suggested that the market value of the female is entered here. 
 
		$1,680
		

		Expected calving opportunities, years
		

		

		

		
		Enter the number of years you expect this beef replacement female will be able to produce a calf.
		7
		

		

		

		

		

		

		

		

	
	
		

		

		Year of purchase
		

		

		
		Enter the year the replacement female is purchased or enters your development program (i.e., year weaned).
		2016
		

		Discount factor (risk rate), %
		

		

		

		
		Enter a desired rate of return (typically suggest to enter 
a value comparable to interest rates on operating loans). 
A value higher than the loan rate is justified if risk is high.

The discount rate is best thought of as an opportunity cost.  
It is the minimum rate of return the investor is willing to take 
to accept the risk associated with the investment.

If you have a targeted rate of return for investing in replacement 
females, enter that as the discount rate.
		5.0%
		

		

		

		

		

		

		

		

	
	
		

		

		First year for calf sales
		

		

		
		Enter the first year a calf will be sold.
		2016
		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Production and Prices
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Year
		

		2016
		2017
		2018
		2019
		2020
		2021
		2022
		2023
		2024
		2025
		2026
		2027
		2028
		2029
		2030
		

	
	
		

		

		Calving opportunity, Yes/No
		

		Yes
		Yes
		Yes
		Yes
		Yes
		Yes
		Yes
		No
		No
		No
		No
		No
		No
		No
		No
		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Marketable calf, 0/1
		

		1
		1
		1
		1
		1
		1
		1
		

		

		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Steer calf weight, lbs
		

		475
		500
		525
		540
		540
		525
		525
		

		

		

		

		

		

		

		

		

	
	
		

		

		Steer calf price, $/cwt
		

		$213.00
		$213.00
		$201.00
		$188.00
		$188.00
		$187.00
		$184.00
		

		

		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Heifer calf weight, lbs
		

		435
		460
		485
		500
		500
		485
		485
		

		

		

		

		

		

		

		

		

	
	
		

		

		Heifer calf price, $/cwt
		

		$203.00
		$203.00
		$191.00
		$178.00
		$178.00
		$177.00
		$174.00
		

		

		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Cull cow weight, lbs
		

		

		

		

		

		

		

		1310
		

		

		

		

		

		

		

		

		

	
	
		

		

		Cull cow price, $/cwt
		

		

		

		

		

		

		

		$60.00
		

		

		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Gross receipts (calf sales)
		

		$947
		$999
		$991
		$953
		$953
		$920
		$905
		$0
		$0
		$0
		$0
		$0
		$0
		$0
		$0
		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Annual cow costs, $/head
		

		$664
		$800
		$800
		$800
		$800
		$800
		$664
		

		

		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Annual heifer development
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		costs, $/head
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Income above annual
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		costs, $/year
		

		$283 
		$199 
		$191 
		$153 
		$153 
		$120 
		$241 
		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Nominal Cash Flows
		Initial
		2016
		2017
		2018
		2019
		2020
		2021
		2022
		2023
		2024
		2025
		2026
		2027
		2028
		2029
		2030
		

	
	
		

		

		

		Purchase
		Year 1
		Year 2
		Year 3
		Year 4
		Year 5
		Year 6
		Year 7
		Year 8
		Year 9
		Year 10
		Year 11
		Year 12
		Year 13
		Year 14
		Year 15
		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Net cash flow
		

		$283 
		$199 
		$191 
		$153 
		$153 
		$120 
		$241 
		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Cull cow salvage value
		

		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		$786 
		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Annual pre-tax cash flows,
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		calves + cull cow
		($1,680)
		$283 
		$199 
		$191 
		$153 
		$153 
		$120 
		$1,027 
		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		

	
	
		

		

		calves
		($1,680)
		$283 
		$199 
		$191 
		$153 
		$153 
		$120 
		$241 
		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Cumulative value of annual
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		pre-tax cash flows,
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		calves + cull cow
		($1,680)
		($1,397)
		($1,197)
		($1,006)
		($854)
		($701)
		($581)
		$446 
		#N/A
		#N/A
		#N/A
		#N/A
		#N/A
		#N/A
		#N/A
		#N/A
		

	
	
		

		

		calves
		($1,680)
		($1,397)
		($1,197)
		($1,006)
		($854)
		($701)
		($581)
		($340)
		#N/A
		#N/A
		#N/A
		#N/A
		#N/A
		#N/A
		#N/A
		#N/A
		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Discounted Cash Flows
		Initial
		2016
		2017
		2018
		2019
		2020
		2021
		2022
		2023
		2024
		2025
		2026
		2027
		2028
		2029
		2030
		

	
	
		

		

		

		Purchase
		Year 1
		Year 2
		Year 3
		Year 4
		Year 5
		Year 6
		Year 7
		Year 8
		Year 9
		Year 10
		Year 11
		Year 12
		Year 13
		Year 14
		Year 15
		

	
	
		

		

		Present value of annual
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		pre-tax cash flows,
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		calves + cull cow
		($1,680)
		$270 
		$181 
		$165 
		$126 
		$120 
		$90 
		$730 
		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		

	
	
		

		

		calves
		($1,680)
		$270 
		$181 
		$165 
		$126 
		$120 
		$90 
		$171 
		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		$0 
		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Cumulative present value of
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		annual pre-tax cash flows,
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		calves + cull cow
		($1,680)
		($1,410)
		($1,229)
		($1,064)
		($939)
		($819)
		($730)
		$0 
		#N/A
		#N/A
		#N/A
		#N/A
		#N/A
		#N/A
		#N/A
		#N/A
		

	
	
		

		

		calves
		($1,680)
		($1,410)
		($1,229)
		($1,064)
		($939)
		($819)
		($730)
		($558)
		#N/A
		#N/A
		#N/A
		#N/A
		#N/A
		#N/A
		#N/A
		#N/A
		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Profitability Indicators
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Nominal (undiscounted):
		

		

		

		

		

		Preferred (discounted):
		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Average annual pre-tax cash flows …………………………..
		$303.69
		

		Net present value (NPV) ……...……………………………………
		$0
		

		

		

		

		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Internal rate of return (IRR) ……………………………………
		5.0%
		

		Maximum bid price for replacement female to yield risk rate ….
		$1,680
		

		

		

		

		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Payback period, years …………………………………………
		7
		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Payback year ……………………………………………………
		2022
		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		
 
		
		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Version 1.3
		

		

		

		

		
 
		
		

		

		

		

		

		

		

	
	
		

		

		Contact: Lee Schulz
		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Date Printed:
		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		8/17/2022
		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		. . . and justice for all
		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		Iowa State University Extension and Outreach does not discriminate on the basis of age, disability, ethnicity, gender identity, genetic information, marital status, national origin, pregnancy, race, religion, sex, sexual orientation, socioeconomic status, or status as a U.S. veteran. (Not all prohibited bases apply to all programs.) Inquiries regarding non-discrimination policies may be directed to Ross Wilburn, Diversity Officer, 2150 Beardshear Hall, 515 Morrill Road, Ames, Iowa 50011, 515-294-1482, wilburn@iastate.edu.

The words contained in this file might help you see if this file matches what you are looking for:

...Sheet example net present value of beef replacement females ag decision maker iowa state university extension and outreach for more information see file b place the cursor over cells with red triangles to read comments enter your input values in shaded if zero clear not purchase financing price female head is being retained from within herd an opportunity cost involved retaining that thus it suggested market entered here expected calving opportunities years number you expect this will be able produce a calf year purchased or enters development program ie weaned discount factor risk rate desired return typically suggest comparable interest rates on operating loans higher than loan justified high best thought as minimum investor willing take accept associated investment have targeted investing first sales sold production prices yesno yes no marketable steer weight lbs cwt heifer cull cow gross receipts annual costs income above nominal cash flows initial flow salvage pretax calves cumula...

Related files

Share

Help

Net Present Value of Beef Replacement Females
Ag Decision Maker -- Iowa State University Extension and Outreach
For more information see File B1-74, Net Present Value of Beef Replacement Females

Place the cursor over cells with red triangles to read comments.
Enter your input values in shaded cells. If zero, enter 0.
Clear your input values if cells NOT shaded.

Purchase and Financing
Purchase price of replacement female, $/head			Enter the purchase price of the replacement female. If the replacement female is being retained from within the herd, an opportunity cost is involved with retaining that female, thus, it is suggested that the market value of the female is entered here. $1,680		Expected calving opportunities, years				Enter the number of years you expect this beef replacement female will be able to produce a calf. 7
Year of purchase			Enter the year the replacement female is purchased or enters your development program (i.e., year weaned). 2016		Discount factor (risk rate), %				Enter a desired rate of return (typically suggest to enter a value comparable to interest rates on operating loans). A value higher than the loan rate is justified if risk is high. The discount rate is best thought of as an opportunity cost. It is the minimum rate of return the investor is willing to take to accept the risk associated with the investment. If you have a targeted rate of return for investing in replacement females, enter that as the discount rate. 5.0%
First year for calf sales			Enter the first year a calf will be sold. 2016

Production and Prices
Year		2016	2017	2018	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028	2029	2030
Calving opportunity, Yes/No		Yes	Yes	Yes	Yes	Yes	Yes	Yes	No	No	No	No	No	No	No	No

Marketable calf, 0/1		1	1	1	1	1	1	1

Steer calf weight, lbs		475	500	525	540	540	525	525
Steer calf price, $/cwt		$213.00	$213.00	$201.00	$188.00	$188.00	$187.00	$184.00

Heifer calf weight, lbs		435	460	485	500	500	485	485
Heifer calf price, $/cwt		$203.00	$203.00	$191.00	$178.00	$178.00	$177.00	$174.00

Cull cow weight, lbs								1310
Cull cow price, $/cwt								$60.00

Gross receipts (calf sales)		$947	$999	$991	$953	$953	$920	$905	$0	$0	$0	$0	$0	$0	$0	$0

Annual cow costs, $/head		$664	$800	$800	$800	$800	$800	$664

Annual heifer development
costs, $/head

Income above annual
costs, $/year		$283	$199	$191	$153	$153	$120	$241	$0	$0	$0	$0	$0	$0	$0	$0

Nominal Cash Flows	Initial	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028	2029	2030
	Purchase	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7	Year 8	Year 9	Year 10	Year 11	Year 12	Year 13	Year 14	Year 15

Net cash flow		$283	$199	$191	$153	$153	$120	$241	$0	$0	$0	$0	$0	$0	$0	$0

Cull cow salvage value		$0	$0	$0	$0	$0	$0	$786	$0	$0	$0	$0	$0	$0	$0	$0

Annual pre-tax cash flows,
calves + cull cow	($1,680)	$283	$199	$191	$153	$153	$120	$1,027	$0	$0	$0	$0	$0	$0	$0	$0
calves	($1,680)	$283	$199	$191	$153	$153	$120	$241	$0	$0	$0	$0	$0	$0	$0	$0

Cumulative value of annual
pre-tax cash flows,
calves + cull cow	($1,680)	($1,397)	($1,197)	($1,006)	($854)	($701)	($581)	$446	#N/A	#N/A	#N/A	#N/A	#N/A	#N/A	#N/A	#N/A
calves	($1,680)	($1,397)	($1,197)	($1,006)	($854)	($701)	($581)	($340)	#N/A	#N/A	#N/A	#N/A	#N/A	#N/A	#N/A	#N/A

Discounted Cash Flows	Initial	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028	2029	2030
	Purchase	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7	Year 8	Year 9	Year 10	Year 11	Year 12	Year 13	Year 14	Year 15
Present value of annual
pre-tax cash flows,
calves + cull cow	($1,680)	$270	$181	$165	$126	$120	$90	$730	$0	$0	$0	$0	$0	$0	$0	$0
calves	($1,680)	$270	$181	$165	$126	$120	$90	$171	$0	$0	$0	$0	$0	$0	$0	$0

Cumulative present value of
annual pre-tax cash flows,
calves + cull cow	($1,680)	($1,410)	($1,229)	($1,064)	($939)	($819)	($730)	$0	#N/A	#N/A	#N/A	#N/A	#N/A	#N/A	#N/A	#N/A
calves	($1,680)	($1,410)	($1,229)	($1,064)	($939)	($819)	($730)	($558)	#N/A	#N/A	#N/A	#N/A	#N/A	#N/A	#N/A	#N/A

Profitability Indicators

Nominal (undiscounted):						Preferred (discounted):

Average annual pre-tax cash flows …………………………..				$303.69		Net present value (NPV) ……...……………………………………						$0

Internal rate of return (IRR) ……………………………………				5.0%		Maximum bid price for replacement female to yield risk rate ….						$1,680

Payback period, years …………………………………………				7

Payback year ……………………………………………………				2022



























Version 1.3
Contact: Lee Schulz
Date Printed:
8/17/2022

. . . and justice for all
Iowa State University Extension and Outreach does not discriminate on the basis of age, disability, ethnicity, gender identity, genetic information, marital status, national origin, pregnancy, race, religion, sex, sexual orientation, socioeconomic status, or status as a U.S. veteran. (Not all prohibited bases apply to all programs.) Inquiries regarding non-discrimination policies may be directed to Ross Wilburn, Diversity Officer, 2150 Beardshear Hall, 515 Morrill Road, Ames, Iowa 50011, 515-294-1482, wilburn@iastate.edu.

Related files

Share

Share to social media

Help

Login Area