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Do Farm Businesses and Big Businesses Apply Different Capital Budgeting Procedures?

Published online by Cambridge University Press:  15 September 2016

Daniel A. Arthurton
Affiliation:
Department of Resource Economics
L. Joe Moffitt
Affiliation:
Department of Resource Economics
P. Geoffrey Allen
Affiliation:
Department of Resource Economics
Douglas A. Cox
Affiliation:
Department of Plant and Soil Sciences, all at the University of Massachusetts, Amherst
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Abstract

Recent studies of capital budgeting procedures used by business executives suggest increasing use of present value methods. This study compares Massachusetts greenhouse business managers use of capital budgeting procedures to those of Fortune 1000 firms. Results indicate that different capital budgeting procedures are used and that the payback criterion remains the most popular for the farm firms studied. Some implications for Extension finance educators are drawn.

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Articles
Copyright
Copyright © 1995 Northeastern Agricultural and Resource Economics Association 

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Do Farm Businesses and Big Businesses Apply Different Capital Budgeting Procedures?
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