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picture1_Present Value Excel Template 46472 | B1 74netpresentvalueofbeefreplacementfemales


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File: Present Value Excel Template 46472 | B1 74netpresentvalueofbeefreplacementfemales
sheet 1 example net present value of beef replacement females ag decision maker iowa state university extension and outreach for more information see file b174 net present value of beef ...

icon picture XLSX Filetype Excel XLSX | Posted on 18 Aug 2022 | 3 years ago
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.








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...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...

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