An excel-based decision aid for evaluating financing alternatives and the Marginal cost of capital

Jeffrey R. Stokes, Jayson K. Harper

Research output: Contribution to journalReview article

1 Scopus citations

Abstract

For agricultural businesses, managing debt capital means choosing from among myriad sources and terms for financing for inputs, machinery, equipment, and land. Providers of debt capital, including input suppliers, equipment dealers, commercial banks, and the Farm Credit System, offer differing interest rates, rebates, points, and other non-interest costs. Microsoft Excel™-based financing decision aids were developed to help agricultural decision makers evaluate options by determining the true cost of capital from supplier financing, machinery and equipment financing, and real estate purchases. These same tools were also used as a teaching aid in senior-level university courses In farm management and agricultural finance to reinforce agricultural cost of capital concepts.

Original languageEnglish (US)
Pages (from-to)339-348
Number of pages10
JournalAgricultural Finance Review
Volume68
Issue number2
DOIs
StatePublished - Nov 1 2008

All Science Journal Classification (ASJC) codes

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics, Econometrics and Finance (miscellaneous)

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