174x Filetype XLSX File size 0.06 MB Source: www.extension.iastate.edu
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 |
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Expected calving opportunities, years |
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Year of purchase |
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Discount factor (risk rate), % |
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First year for calf sales |
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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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