HOW TO ESTIMATE PROFITS 



The rate of interest method is the usual 

 method in the commercial world. The 

 prosperity of the railroad or industrial con- 

 cern is judged by the rate of interest it pays 

 its stockholders on the par value of the 

 stock. The stock itself takes on the capital- 

 ization in accordance with the present and 

 prospective dividends. The fact that this 

 method is generally used in the commercial 

 world is evidence that it is well suited to its 

 needs. 



The young farmer who wishes to know 

 whether the operation of a given tract of 

 land in a certain manner offers him a worthy 

 opportunity will not find the interest on the 

 investment method the best suited for his 

 purpose. This is especially true when ap- 

 plied to a single product. For example, it 

 may be shown that 50 hens will, when 

 properly managed, in connection with other 

 farm enterprises, return a remarkable inter- 

 est on the capital employed. It does not fol- 

 low, however, that a man can make a living 

 with fifty hens or even 500 hens. If a man 

 has an investment of $5,000, on which he 

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