International Journal of Commerce & Business Management

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Financial Feasibility of Investment in Sapota Orchards in Thane District of Maharashtra


Affiliations
1 Department of Agricultural Economics, Dr. B.S. Konkan Krishi Vidyapeeth, Dapoli, Ratnagiri (M.S.), India
2 Department of Agricultural Economics, College of Agriculture, Dr. B.S. Konkan Krishi Vidyapeeth, Dapoli, Ratnagiri (M.S.), India
     

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The financial feasibility analysis of capital investment in sapota orchard in Thane district of Maharashtra revealed profitability of enterprise. The per hectare capital investment for establishing sapota orchard for period of first five years was Rs. 93609. The annual per hectare cost of production (Cost C) for sapota worked out to Rs. 120138. The analysis of investment in sapota orchard showed that, the investment made in sapota plantation is economically viable with Benefit cost ratio (BCR) greater than unity(1.87), Net present value (NPV) was positive (Rs. 495835) and Internal rate of return (IIR) was higher than prevailing rate of interest (12 %). The pay back period also desirable considering the total economic life of sapota orchard (50 years).

Keywords

Cost, Return, Financial Feasibility, NPV, BCR, PBP, IRR.
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  • Financial Feasibility of Investment in Sapota Orchards in Thane District of Maharashtra

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Authors

R. V. Surwase
Department of Agricultural Economics, Dr. B.S. Konkan Krishi Vidyapeeth, Dapoli, Ratnagiri (M.S.), India
P. J. Kshirsagar
Department of Agricultural Economics, College of Agriculture, Dr. B.S. Konkan Krishi Vidyapeeth, Dapoli, Ratnagiri (M.S.), India
J. M. Talathi
Department of Agricultural Economics, Dr. B.S. Konkan Krishi Vidyapeeth, Dapoli, Ratnagiri (M.S.), India
S. T. Gore
Department of Agricultural Economics, Dr. B.S. Konkan Krishi Vidyapeeth, Dapoli, Ratnagiri (M.S.), India

Abstract


The financial feasibility analysis of capital investment in sapota orchard in Thane district of Maharashtra revealed profitability of enterprise. The per hectare capital investment for establishing sapota orchard for period of first five years was Rs. 93609. The annual per hectare cost of production (Cost C) for sapota worked out to Rs. 120138. The analysis of investment in sapota orchard showed that, the investment made in sapota plantation is economically viable with Benefit cost ratio (BCR) greater than unity(1.87), Net present value (NPV) was positive (Rs. 495835) and Internal rate of return (IIR) was higher than prevailing rate of interest (12 %). The pay back period also desirable considering the total economic life of sapota orchard (50 years).

Keywords


Cost, Return, Financial Feasibility, NPV, BCR, PBP, IRR.