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| If you have an operating loan, interest costs will take away more than half the carry. Waters down the advantage pretty quick. Then add the interest on the bin loan if you have one. Double whammy. Add the interest if you don’t. If you have cash to pay for a bin, it’s worth something not being tied up in a bin. Called opportunity cost. If you’re counting on carry to pay the bins way, it will be a long time getting it paid for. Build it cuz you want it and it’s improvement in harvest logistics, and if the future rewards you with a few extra nickels, count your blessings. But don’t BS yourself thinking carry is going to justify it each and every year.
Edited by Boone & Crockett 1/20/2019 08:23
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