Climate change has already had major impacts on our planet. Loss of sea ice, accelerated sea level rise and longer, more intense heat waves, are a few of these. Many scientists believe that a continued climate change will have even more severe impact on our planet. To tackle the climate change, a fast transition towards renewable energy sources is necessary. One of the most promising sources of renewable energy is solar energy. To achieve the goal of making the world more reliable on solar energy, various actors try to improve the technology and the financial basis regarding this way of extracting energy. In this transition, calculations have to be as accurate as possible, in order to benefit from them when installing solar panels. This bachelor thesis intends to create an investment model for solar plants and an optimization of the plant’s size based on net present value. The model is built in Microsoft Excel, and factors such as electricity prices, electricity production/consumption and several others are taken into account. Based on the comparison with a case study and the calculations made by the model, the results suggest a reliable model. On behalf of Herrljunga Elektriska AB, the model is created to help them generate reliable and fast investment calculations, which will hopefully bring value to their business.

This master thesis has been performed in association with Blekinge Institute of Technology and in collaboration with the company Dynapac Compaction Equipment AB. The thesis aims to investigate how Discrete Event Simulation (DES) can be used for value and sustainability design concept assessments in early design stages. The research is made by investigating the example of simulating the lifecycle of a double drum asphalt compactor. The model is created in the computerbased DES software Simio LLC, where the captured data of the compactor´s lifecycle performances are linked to a Net Present Value (NPV) model and a sustainability assessment. The model is then further explored and evaluated in the Decision Arena, located at Blekinge Institute of Technology.  The simulated model is created to approach a ‘lifelike’ lifecycle of the machine, containing the compactor´s ordinary usage in road construction. This includes operations in sidewalk, parking lot and pothole repair scenarios. The model contain service, maintenance, transport, workers, resource sharing and more. The model is connected to MS Excel to transfer data. The life cycle performances are captured in the model and used to estimate the cost parameters of energy -, water -, maintenance -, service - and transportation energy cost within the NPV model. The CO2 – emission for fuel consumption and transport, together with the total water consumption in the sustainability assessment.  The outcome of the thesis showed that the method gave good results for developing new design configurations in the early phases in product development. The method could support designing towards sustainable and long-term solutions and collaborations over the sectors (i.e. between stakeholders, engineers, designers, non-experts and more). The outcome in the specific case resulted in successfulness of capturing all lifecycle performances of the machine and linking them to the mentioned parameters. The research question is, however, generic and the investigation for the specific case study uses assumptions and up- and down scaled data to protect the company secrecy. For future work, the method together with Internet of Things (IoT), Digital Twin or Industry 4.0 could be in high interest to investigate further. / Detta examensarbete har blivit utfört i association med Blekinge Tekniska högskolan och i samarbete med företaget Dynapac Compaction Equipment AB. Syftet med projektet är att undersöka hur diskret händelsesimulering (DES) kan användas för värde - och hållbarhets bedömning för olika designkonfigurationer, i tidiga skeden av produktutvecklingen. Arbetet är utfört genom att tillämpa exemplet av att simulera livscykeln för en asfaltsvält med dubbla trummor. Simuleringsmodellen är framställd genom det databaserade DES programmet Simio LLC, där utdata för maskinens livscykelprestanda tas fram och kopplas till en Net Present Value (NPV) modell och en hållbarhetsdömning för maskinen. Simuleringsmodellen utforskas och bedöms sedan vidare i ’Decision Arena’ på Blekinge Tekniska Högskola.  Den simulerade modellen är framställd för att eftersträva en verklighetstrogen livscykel av maskinen, innehållande dess vanliga användningsområden inom vägarbete. I livscykeln inkluderas operationer av trottoarer, parkeringsplatser och reparationer av hål i vägbanor. Modellen innehåller även service och underhåll, transport, arbetare/anställda, resursdelning med mera. Modellen är kopplad till MS Excel för att föra över in- och utdata mellan programmen. Maskinens livscykelprestanda är hämtat från modellen och använt till att uppskatta kostnadsparametrarna för energi, vatten, underhåll, service och energi under transport i NPV – modellen. Maskinens CO2 – utsläpp för bränsleförbrukning och transport, tillsammans med vattenkonsumtionen i hållbarhetsbedömningen. Arbetet visar på goda resultat för att utveckla nya desginkonfigurationer i de tidiga skedena inom produktutveckling. Metoden kan stödja utformning mot hållbara och långsiktiga lösningar, samt förstärka samarbeten över sektorerna (dvs. mellan intressenter, ingenjörer, designers, icke-experter med mera). Utfallet för det specifika fallet resulterade i framgång med att fånga upp maskinens livscykelprestanda och koppla dessa till de ovan nämnda parameterana. Forskningsfrågan är dock generell och utredningen för den specifika fallstudien använder uppskattningar och upp- och nerskalade data för att skydda företagets sekretess. För framtida arbete, kan metoden tillsammans med Internet of Things (IoT), Digital Twin och Industry 4.0 vara av stort intresse för att undersöka.

Master of Agribusiness / Department of Agricultural Economics / Allen M. Featherstone / The cost of energy is a major concern for the United States and its citizens. With domestic demand at all time highs, the need for renewable fuels has become a key in reducing our countries reliance on imported energy. It is important for the U.S. to examine the feasibility of producing its own energy from renewable resources that can be grown domestically. Along with the potential financial gains from renewable fuels, the ability to control the supply of energy for the U.S. is also very important. With the amount of oil imported by the U.S., the ability to produce more of our nations needs and not be forced to rely on other countries could be important for our country moving forward. With the political unrest in many oil producing areas, the security of energy independence is a goal for the U.S. This study uses United States Department of Agriculture, Pro Exporter, Advance Trading, and other statistical sources to analyze the economic feasibility of an ethanol plant near Des Moines, IA. It looks at the available supply of corn in the area as well as the production of ethanol and distillers grains. An increase in the price of imported oil does not necessarily results in an economically viable ethanol plant. Many variables go into the economic viability of an ethanol plant and consumers will still buy the low cost good, and that may be imported energy. Some of these variables affecting economic viability include corn price and availability, denaturant price, natural gas price, ethanol demand and distillers grains demand. With the push for cleaner air and a cleaner environment, ethanol is also used as a gasoline additive to reduce emissions. As more states regulate a higher inclusion rate of ethanol, this will continue to create greater demand. A 100 million gallon ethanol plant is an economically viable investment in the Des Moines area, but when looking at the sensitivity tests, the better investment option if investors want to enter the ethanol industry, is to buy an existing ethanol plant.

Master of Agribusiness / Department of Agricultural Economics / Jeffery R. Williams / The objective of this thesis is to conduct a net present value analysis of installing a solar power generation system on company owned turkey grow out ranches. This research project provides information regarding the systems power production capacity, investment cost, maintenance requirements, amount of energy saved, useful life of the equipment, marginal state and federal tax brackets for the company. The investment cost of the system includes the price of the equipment and installation service. Many of the system costs may be offset by rebates, tax credits and grants from various government agencies. These must also be included in the financial analysis as they can greatly affect the financial viability of the project. The system is projected to have a useful life of 30 years with an inverter replacement planned for year 15. Four scenarios were evaluated using two levels of rebates and two electrical rate inflation levels. The evaluations conducted showed positive after tax NPV evaluations on three of four scenarios reviewed with the most financially attractive options available when the rebates, tax credits and grants were maximized. This was the case at both electrical rate inflation scenarios. These same scenarios produced favorable results when looking at reduction of live production ranch costs. The system effectively locked in electrical rates below current rates for the 30 year life of the system. This reduced ranch live production cost by as much as 11.73 percent. It also gives the company an advantage over the competition when used as a marketing tool due to the use of green technology in company production practices.

Master of Agribusiness / Department of Agricultural Economics / Jeffery R. Williams / Anaerobic digestion is an alternative solution to organic waste management that offers economic and environmental benefits. The Kawangware open air market in Kenya generates approximately 10 metric tons of organic waste per day as a result of farm produce sold at the market. Fresh fruits and vegetables sold at the market account for more than 80 percent of the organic waste. This organic waste is left uncollected, piling up and therefore becoming pollution to the environment. Instead, this waste can be processed by anaerobic digestion to produce energy, organic fertilizer and greenhouse gas credits. The main objective of this project is to help investors and members of Kawangware Waste Utilization Initiative (a waste management community based organization in the Kawangware area) answer the following questions: (a) Is it economically profitable to invest in an anaerobic digestion system to convert the market organic waste to methane and fertilizer? (b) Is it economically profitable to burn the methane to generate electricity? To answer these questions, the study examines the costs and returns of producing methane, electricity, and fertilizer from organic waste under various scenarios using net present value, internal rate of return and payback period analysis techniques. Three production conditions under various scenarios using the anaerobic digester are examined. The conditions include: (a) Production of methane and organic fertilizer. (b) Production of methane, organic fertilizer, and carbon credits. (c) Production of electricity, organic fertilizer, and carbon credits. From these three production conditions examined, production of methane, organic fertilizer and carbon credits had the highest net present value of $332,610, internal rate of return of 21.4%, and the shortest payback period of 7.9 years. If carbon credits could not be sold the next best alternative would be production and selling of methane and organic fertilizer which has a net present value of $246,752, internal rate of return of 19%, and a payback period 9.2 years.

Despite substantial consumer demand and willingness to pay premium prices for organically grown fruit, apple growers in Vermont and other New England states have been slow to adopt certified organic practices. Barriers cited in the past to increased adoption of organic apple production in the region include susceptibility of traditionally grown cultivars to apple scab, lack of effective insect pest management materials, and few available effective options for fruit thinning. Recent changes in apple cultivar plantings in the region, introduction of new insect pest management materials, and advances in crop thinning justified an evaluation of organic apple production systems containing cultivars identified as important to the future of the apple industry. In 2006, two apple orchards were established at the University of Vermont Horticulture Research and Education Center in South Burlington, VT to comprehensively evaluate the five commercially-important apple cultivars of `Ginger Gold', `Honeycrisp', `Liberty', `Macoun', and `Zestar!' over eight growing seasons in two organically-managed orchard production systems, including a newly-planted high-density orchard (Orchard 1) and in an existing, medium-density orchard which was top-grafted to the new cultivars (Orchard 2). Parameters for tree growth and survival, crop yield, disease and arthropod pest incidence on foliage and fruit, and long-term economic return, including a twenty-year projection of net present value (NPV) of each cultivar in the two systems were evaluated in this study. `Ginger Gold', despite high incidence of some diseases on foliage and fruit, performed the best in both orchard systems overall. The cultivar was among the cultivars with the highest measurements of tree growth. `Ginger Gold', along with `Honeycrisp', had the highest cumulative net crop yield per tree in Orchard 1 and the highest in Orchard 2. Notably, apple scab on `Honeycrisp' foliage and fruit and `Zestar!' fruit in both orchards was at a level that was not significantly different from `Liberty', a scab-resistant cultivar on which no scab was observed. However, `Honeycrisp' had the highest incidence of fruit rots in both orchards, but it was not significantly different than `Zestar!' in Orchard 1. Management of lepidopteran pests of fruit was a major challenge on all cultivars over the years of the study. For most of the tree growth parameters and cumulative net crop yield, `Liberty' was among the lowest group of cultivars in both orchards. Cumulative net crop yield of both `Macoun' and `Zestar!' were also among the lowest in both orchards with the top-grafted `Macoun' and `Zestar!' trees having significant tree death compared to the other cultivars in Orchard 2. Harvested fruit were graded to commercial standards and cumulative gross and net income calculated from grade distribution, crop yield, and fruit price data. In Orchard 1, `Ginger Gold' and `Liberty' had greater cumulative gross income per hectare from 2006-2013, in excess of US$40,000, compared to `Liberty'. However, after management costs were deducted, all cultivars in Orchard 1 had negative cumulative net income of $-77,892 or less. In Orchard 2, all cultivars had positive cumulative net income for 2006-2013, and `Ginger Gold' had the highest at $109,717/ha. The twenty-year projected NPV was negative for all cultivars in Orchard 1, but in Orchard 2, all cultivars had positive NPV with `Ginger Gold' having the highest among the cultivars.

Master of Agribusiness / Department of Agricultural Economics / Vincent R. Amanor-Boadu / Nationwide, the craft brew industry has enjoyed massive growth. Hops are an important ingredient in craft brew beer and rapid growth of this industry has created many opportunities to grow hops. Currently, hops production is concentrated in the Pacific Northwest. That is beginning to change with new hops acres being planted every year across the country. The study looks at how economically feasible it is to plant hops in Nebraska. Is there enough local demand? Finally, given that Nebraska’s weather is dramatically different than the Pacific Northwest, can hops flourish there? The research begins by assessing all costs associated with a starting a three acre hops operation. Estimated yield and income is projected for ten years to establish cash flow. Instances of hail, wind and tornados for Clay County Nebraska for the years 2006-2016 were calculated to determine a probability of those weather events occurring. The probability was then used to determine the effect it could have on yield of hops per year. In addition to cost of production, the study also documented the growth of Nebraska’s craft brew industry to establish demand for locally grown hops. The researched concluded that if production stayed constant and our discount rate at 5%, assuming prices remain where they are or higher, then it is economically feasible to grow hops in Nebraska. Wind, hail and tornadoes do pose a threat in the Midwest but their effect on yield is not enough to deter someone from planting hops there. Access to reliable capital to begin and sustain a hops operation appears to have a greater impact. In addition, Nebraska’s craft brew industry continues to expand rapidly suggesting a strong market for locally grown hops. This information is important for anyone who is considering planting a commercial hops yard. Given how expensive the start-up costs are and how labor intensive the crop is, this research can provide guidance to those seeking to add hops production to their new or existing farming operation.

Master of Agribusiness / Department of Agricultural Economics / Bryan Schurle / Frito-Lay is part of the PepsiCo Family which makes some of the best known and top selling snack foods around. Frito-Lay is the dominant player in the salty snack category in the United States, with a 65 percent share of the market. Frito-Lay brands include Lay's, Ruffles, Tostitos, Sunchips, Fritos, Cheetos, and Doritos. The objective of the thesis is to analyze a potential project: installing a raw potato sorting system on a potato chip line. Part of the analysis will be to conduct a net present value analysis of the costs and benefits associated with the project. Currently the line runs with one full time employee that inspects the raw incoming potatoes for foreign matter and color. Recently, technology options are available that the company could add to the raw potato sorting function that could potentially reduce employee labor costs. This research project provides information regarding the system’s investment cost, maintenance requirements, labor savings, and finished product quality impact. As the business environment changes businesses must keep up with rapidly changing technology to be able to compete. A company that is able to compete will be able to survive in the market and sustain profitability. Capital expenditures need to be evaluated and adopted if they keep a company competitive or make a company more cost efficient. The analysis concluded that the investment of installing a raw potato sorting system would be profitable, earning a positive NPV and internal rate of return greater than Frito-lay’s cost of capital. I would recommend that Frito-Lay move forward with this investment.

Master of Agribusiness / Department of Agricultural Economics / Vincent Amanor-Boadu / Bunge is a global agribusiness company that has invested in a facility to produce extruded ingredients and inclusions in its Woodland, California rice mill. Because Bunge is not a branded food manufacturer, it is in a unique position to be a contract manufacturer to a variety of customers without the potential for a conflict of interest. Also, because Bunge is primary in three of the most common ingredients for extruded products, corn, rice and oil, this would be a move down the value chain that would allow it to be more competitive. The initial investment in Woodland has allowed Bunge to learn more about the manufacture of extruded ingredients and inclusions and also gauge overall market demand. A possible next step would be to build a second facility in the eastern half of the United States to expand capacity and be geographically situated to supply the Midwest, South and Northeast regions of the U.S. In order to begin exploring the possibility of a greenfield expansion into the contract manufacture of extruded ingredients and inclusions, this thesis considers three subjects. The first is a customer survey case study, which discovers the customer found high price and whether or not the manufacturer was considered a strategic partner to be the most significant factors in how desirable a manufacturer is. The second subject considered is the ideal location for a second manufacturing site based on a number of factors, including distance from both the customer base and inputs, labor issues, and any savings associated with a particular site. It was found that distance from the ultimate customer may be less important overall than the other factors. The third and final component of the research involved conducting a financial feasibility study. The analyses were conducted under alternative scenarios and subjected to a sensitivity analysis on a number of crucial variables. The weighted average NPV for the alternative scenarios was about $31 million and the IRR of 13.8% cleared the company’s investment hurdle rate. The payback period was estimated to be just under six years. All these suggest that the project as presented in this research is feasible and any investment in it, subject to the absence of any unforeseen event, will be profitable. It is hoped that this information can be used as a starting point and a guide to consider a future investment based on demand and other market indicators available at the time such a decision is required.

The main goal of thesis is to give explanation of credit insurance process. Theoretical unit describes potential risks in the international and domestic trade and instruments by which these risks can be eliminated or reduced. The practical part is focus on the service of credit insurance as an effective tool to ensure against the risk. On the case study is calculated by using Net Present Value dependence on the size of discount rate, size of insured loss and date of insurance claim. In the final part of the thesis author take a think of what extent are credit insurance companies responsible for the deepening of economic recession.