Title

FINANCIAL FEASIBILITY ANALYSIS OF A CUSTOM HARVESTING BUSINESS OF WINE GRAPES IN FRESNO COUNTY

Author(s) Information

Jacob Constance, California Polytechnic State University, San Luis ObispoFollow

College - Author 1

College of Agriculture, Food and Environmental Sciences

Department - Author 1

Agribusiness Department

Degree Name - Author 1

BS in Agricultural Business

Date

12-2010

Primary Advisor

William Amspacher, College of Agricultural, Food, and Environmental Sciences, Wine and Viticulture Department

Abstract/Summary

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.

URL: https://digitalcommons.calpoly.edu/agbsp/55