ABSTRACT
The time value of money influences production decisions. Everyone prefers money today over money in the future. Sometimes farmers invest in an enterprise which will produce a series of payments. Assume that a fish farmer wants to invest money in a catfish production activity which will generate returns over a number of years. The fish farmer wants to know the value of the payments or returns after a number of years, say upon retirement age. The procedure for determining the present value of a series of payments is simply an extension of the method for determining the present value of a single future sum. An examination of the formula for present value of a uniform series will show that as N increases for a given annuity, the present value increases at a decreasing rate. In aquacultural production, certain assumptions are often made when constructing a pond or some of the structures related to fish production.
