ECONOMIC AND FINANCIAL ANALYSIS OF INVESTMENTS IN RASPBERRY PLANTATIONS

Petar Gogić and Sanjin Ivanović

No 161824, 50th Anniversary Seminar, Agriculture and Rural Development -Challenges of Transition and Integration Processes, September 27, 2013 from University of Belgrade, Department of Agricultural Economics, Faculty of Agriculture

Abstract: Raspberries are one of very important agricultural products of the Republic of Serbia and this production offers a lot of possibilities for employment in rural areas. Therefore, the goal of this paper is to analyze various aspects of economic efficiency and financial feasibility of investments in establishment of raspberry plantations. Models of investments in raspberry plantations are formed using real technological, organizational and economical conditions at rural households. These investment models considered different dynamics of investments in raspberry plantations. Besides, there were assumed various financing conditions for these investments. For evaluation of economic efficiency of the investments are used appropriate capital budgeting methods – net present value, modified internal rate of return and payback period. The analysis proved that establishment of raspberry plantations is economically efficient for both assumed dynamics of investments. It is economically more acceptable to establish raspberry plantation simultaneously on the entire available surface intended for that purpose, than to do it gradually. It is also determined that investments will be financially feasible if participation of borrowed funds in structure of financial sources is less than 41.07%.

Keywords: Agricultural Finance; Community/Rural/Urban Development; Crop Production/Industries (search for similar items in EconPapers)
Pages: 12
Date: 2013-09
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ubgc50:161824

DOI: 10.22004/ag.econ.161824

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