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The Crop Profitability Analysis CPA computer program is designed to help agricultural producers make longrun cropping decisions. CPA uses previously generated enterprise budgets to establish a base from which producers can analyze the potential profitability of perennial crops with establishment periods, such as orchard, berry, and vineyard crops, or the feasibility of longterm crop rotations. CPA permits up to a 20year planning horizon and uses the economic concepts of net present value, annual equivalence, and internal rate of return to analyze the potential profitability of a given enterprise. CPA also analyzes the financial feasibility of potential investments by generating annual net cash flows.
Agricultural Finance Review – Emerald Publishing
Published: May 5, 2006
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