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.

investment evaluation of solar electric power station, two main parts, first focus on evaluation before positive decision about making investment, second part reflects the present situation, use economic criterion: net present value, internal rate of return, pay-off period and additional indices

The ongoing change towards completely renewable power production in Sweden entails new challenges in maintaining a stable power system and puts greater demands on the frequency control. Hydropower caters for all frequency control in the Swedish grid today. However, the new challenges make it necessary to explore other technologies that potentially could provide frequency control. The aim of this master thesis is thus to map different technologies that potentially could deliver the reserves FCR and aFRR, with the main focus of investigating the economic potential of these technologies and their competitiveness during different seasons. The technologies investigated were lithium-ion batteries, flywheels, demand response and wind power plants. Different applications for these technologies were also investigated. The different investment alternatives were evaluated by calculating the net present value and the net present value ratio. The results show that the economic potential is greatest in cases where existing infrastructure could be used. Investments in stand-alone energy storage systems are not profitable today but might be so in the future as the prices continue to decrease. The results also show that many of the technologies and applications are competitive alternatives to hydropower during different seasons, which shows that there is potential in participating in the balancing markets with these technologies. However, it seems relevant to investigate further if, and if so how, the regulations on endurance can be adapted to actual conditions to further opening up the markets to more actors while maintaining a stable power system.

This thesis analyzes the long run relationship between stock markets and macroeconomic variables, such as the real industrial production index, consumer price index, money supply, and long-term government bonds. By the use of recent developments in cointegration methodologies a larger set of countries is analyzed due to mitigation of the issue where variables are integrated of different orders. Based on a present value model, this thesis applies an ARDL model and conducts the bounds testing procedure for analysis of cointegrating relationships among the variables. Complemented by the popular Johansen cointegration methodology, it is found that the variables are cointegrated for all of the twelve countries. Hence, the present value model provides a theoretical explanation of the long run connection between stock markets and macroeconomic variables. Finally, the long run relationship is estimated using both FMOLS and DOLS. Results show that real economic activity, proxied by the real industrial production index, enters a positive relationship with the stock market indices, and so does money supply. In contrast, the consumer price index and long-term government bonds enter a negative relationship with the stock market indices. Hence, this thesis adds to the literature by applying new methodologies to the topic, through which a larger set of countries can be analyzed, and by further analyzing the long run relationship between stock markets and real economic activity.

The thesis deals with the assessment of the investment project of the construction and operation of biogas plant Kralovická zemědělská, a.s. The emphasis is placed on the evaluation of the investment project by calculating the net present value and on the assessment of an optimal option for drawing subsidy for electricity generation.