This paper analyzes the economnic feasibility
of an investment designed to digest anaerobically
cage layer manure and convert biogas into electricity which is sold to a public utility. A
simulation model is used to calculate the aftertax
net present value (NPV) of a digestion system
for eight egg farms differing in size under alternative
scenarios. The results sh& that farm
size and electricity price projections have a
major impact on the magnitude and sign of the
NPV estimates. Technical performance also has a
marked effect on the investments' feasibility,
while tax credits and 1& interest rates have a
relatively minor influence.
