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Preface

Scope and Methodology

Revised Edition

Using This Book

Organization of Chapters

Computations

Units of Measurement and Currency

Notation

Technical Terms

Supporting Materials

1. Projects, The Cutting Edge of Development

What Is a Project?

Plans and Projects

Advantages of the Project Format

Limitations of the Project Format

Aspects of Project Preparation and Analysis

The Project Cycle

Accuracy of Agricultural Project Analyses

Why Agricultural Project Analyses Prove Wrong

Steps in Project Analysis

2. Identifying Project Costs and Benefits

Objectives, Costs, and Benefits

"With" and "Without" Comparisons

Direct Transfer Payments

Costs of Agricultural Projects

Tangible Benefits of Agricultural Projects

Secondary Costs and Benefits

Intangible Costs and Benefits

Pricing Project Costs and Benefits

Prices Reflect Value

Finding Market Prices

Predicting Future Prices

Prices for Internationally Traded Commodities

Financial Export and Import Parity Prices

Farm Investment Analysis

Objectives of Financial Analysis

Elements of Farm Investment Analysis

5. Financial Analysis of Processing Industries

Balance Sheet

Income Statement

Financial Ratios

Financial Rate of Return

6. Analyzing Project Effects on Government Receipts and Expenditures

Government Cash Flow

Foreign Exchange Flow

Cost Recovery

Joint Cost Allocation

7. Determining Economic Values

Determining the Premium on Foreign Exchange

Adjusting Financial Prices to Economic Values


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