Financial Profitability and Sensitivity Analysis of Palm Oil Plantation in Indonesia
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60460709%3A41310%2F15%3A67777" target="_blank" >RIV/60460709:41310/15:67777 - isvavai.cz</a>
Result on the web
<a href="http://dx.doi.org/10.11118/actaun201563041365" target="_blank" >http://dx.doi.org/10.11118/actaun201563041365</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.11118/actaun201563041365" target="_blank" >10.11118/actaun201563041365</a>
Alternative languages
Result language
angličtina
Original language name
Financial Profitability and Sensitivity Analysis of Palm Oil Plantation in Indonesia
Original language description
Oil palm cultivation in Indonesia is increasing. This study investigates the fi nancial and economic aspects of establishing an oil palm plantation using data collected in 2014. The fi nancial case study is undertaken from the perspective of company in North Sumatra, Indonesia. A spreadsheet model was used to develop and calculate the net present value (NPV), return of investment (ROI), internal rate of return (IRR) and payback period (PP). Sensitivity analysis of the NPV to the default discount rate (10%) was included. A 8,000 ha plantation over 25 years was estimated to result in a positive NPV of USD 10,670 with a ROI 73.50% and an IRR at 14.83% and payback period of 6.75 years. Establishing an oil palm plantation seems to be very profi table investment on the basis of the assumptions made. System is tested on sensitivity in diff erent capital and recurrent costs and in selling price of raw material, while change in selling price of FFB is more sensitive to NPV than change in invest
Czech name
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Czech description
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Classification
Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
GA - Agricultural economics
OECD FORD branch
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Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2015
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis
ISSN
1211-8516
e-ISSN
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Volume of the periodical
63
Issue of the periodical within the volume
4
Country of publishing house
CZ - CZECH REPUBLIC
Number of pages
9
Pages from-to
1365-1373
UT code for WoS article
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EID of the result in the Scopus database
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