Date

12-2010

Degree Name

BS in Agricultural Business

Department

Agribusiness Department

Advisor(s)

William Amspacher

Abstract

This study was undertaken to determine if it was financially feasible to start a custom harvesting business of wine grapes in Fresno County. A fully amortizing loan for $120,000 was taken out at a four percent interest rate and loan term of five years. The custom harvesting business in Fresno County was analyzed using capital budgeting techniques and forecasted financial documents. It is concluded to be profitable over an eight year span to establish and maintain a machine harvesting business based on the investment analysis that provides a net present value of $69,450.37 at a discount rate of 12 percent, equal to the owners cost of capital.