Bush tomato: New investment - 20 year analysis |
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Discount Rate: |
7% |
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Net Present Value of project |
$369,592 |
Very Favourable Outcome |
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Internal Rate of Return |
119% |
Very Favourable Outcome |
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Benefit:Cost Ratio |
1.60 |
Very Favourable Outcome |
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Sensitivity Analysis: |
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Net Present Value with: |
Discount rate |
5%NPV = |
$ 445,320 | Not sensitive |
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Discount rate |
9%NPV = |
$ 309,884 | Not sensitive |
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Internal Rate of return with: |
Returns decreased by |
10%/96% |
Sensitive |
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Total capital increased by |
10%/110% |
Not sensitive |
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Seasonal inputs increased by |
10%/109% |
Not sensitive |
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|
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Net Present Value equals ZERO at standard discount rate with & (sic) |
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Returns decreased by
|
38% | Outcome not sensitive to yield / price assumptions |
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Investment increased by
|
949% | Outcome not sensitive to investment expenditure assumptions |
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Seasonal inputs increased by |
69% |
Outcome not sensitive to seasonal input assumptions | ||||
Breakeven Analysis: |
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The enterprise breaks even in year |
4 |
Bush tomato: Additional investment - 20 year analysis |
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Discount Rate: |
7% |
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Net Present Value of project |
$361,104 |
Very Favourable Outcome |
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Internal Rate of Return |
89% |
Very Favourable Outcome |
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Benefit:Cost Ratio |
1.58 |
Very Favourable Outcome |
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Sensitivity Analysis: |
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Net Present Value with: |
Discount rate 5% |
NPV = |
$ 435,625 |
Not sensitive |
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Discount rate 9% |
NPV = |
$ 302,340 |
Not sensitive |
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Internal Rate of return with: |
Returns decreased by |
10% |
75% |
Sensitive |
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Growing costs increased by |
10% |
83% |
Not sensitive |
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Threshold Analysis: |
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Net Present Value equals ZERO at standard discount rate with & (sic). |
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Returns decreased by |
37% |
Outcome not sensitive to yield / price assumptions |
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Growing costs increased by |
67% |
Outcome not sensitive to seasonal input assumptions |
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Breakeven Analysis: |
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The enterprise breaks even in year |
4 |
Bush tomato: YIYO Gross Margin |
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Income: |
4,000 kg/ha @ $15/kg |
$60,000 |
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Variable costs: |
|
$36,278 |
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Gross Margin: |
$23,722 per ha |
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Gross Margin/ha sensitivity to yield and price |
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Average price ($/kg) |
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$ 11.00 |
$ 13.00 |
$ 15.00 |
$ 17.00 |
$ 19.00 |
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3900 |
$ 6,622 |
$ 14,422 |
$ 22,222 |
$ 30,022 |
$ 37,822 |
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3950 |
$ 7,172 |
$ 15,072 |
$ 22,972 |
$ 30,872 |
$ 38,772 |
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Average yield (kg/ha) |
4000 |
$ 7,722 |
$ 15,722 |
$ 23,722 |
$ 31,722 |
$ 39,722 |
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4050 |
$ 8,272 |
$ 16,372 |
$ 24,472 |
$ 32,572 |
$ 40,672 |
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4100 |
$ 8,822 |
$ 17,022 |
$ 25,222 |
$ 33,422 |
$ 41,622 |