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

Jeffrey R. Stokes, Jayson Kennedy Harper

Research output: Contribution to journalReview article

1 Citation (Scopus)

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

Fingerprint

Decision Support Techniques
decision support systems
funding
Economics
Costs and Cost Analysis
Equipment and Supplies
Capital Financing
business debt
Farm Credit System
agricultural finance
debt
interest (finance)
farm management
Teaching
Cost of capital
Marginal cost
Excel
Financing
Decision aids
Farms

All Science Journal Classification (ASJC) codes

  • Finance
  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics
  • Strategy and Management

Cite this

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An excel-based decision aid for evaluating financing alternatives and the Marginal cost of capital. / Stokes, Jeffrey R.; Harper, Jayson Kennedy.

In: Agricultural Finance Review, Vol. 68, No. 2, 01.11.2008, p. 339-348.

Research output: Contribution to journalReview article

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