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Corn‐Ethanol Plant Investment: A Real Options Case Study
Author(s) -
Secor William G.,
Boland Michael A.
Publication year - 2017
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1093/ajae/aaw102
Subject(s) - investment (military) , net present value , software , value (mathematics) , corn ethanol , set (abstract data type) , computer science , net (polyhedron) , agricultural science , operations research , ethanol , ethanol fuel , economics , microeconomics , engineering , mathematics , production (economics) , environmental science , programming language , machine learning , chemistry , organic chemistry , politics , political science , law , geometry
The objective of this article is to describe an investment decision using net present value and real options. A case study describes the data and the corn‐ethanol industry so students can study a cooperative's decision of whether or not to invest in a new corn‐ethanol plant in 2015 Nebraska. An extensive set of information accompanies this case, including spreadsheets with data, computer software code, lesson plans for teaching real options and net present value, and an extensive teaching note.