Situations examined included: (1) the effect of discounting on the breeding objective (income and expense per year v. discounting at 0, 5 and 10%); (2) the effect of ignoring the economic value for food intake in the objective; (3) the effect of inclusion of yearling weight or the deletion of calving date from the selection index. In general, correlations between objectives for discounting and income and expense per year were greater than 0·95, whereas correlations between indices were greater than 0·85. Setting food costs equal to zero shifted emphasis from reproduction to growth traits, with a consequent increase in food intake. The addition of yearling weight to the index caused a small increase in the accuracy of the index, whereas the deletion of calving date had a large effect, halving the accuracy of the index. The practical implications of the results are discussed.