Financial Profitability and Sensitivity Analysis of Palm Oil Plantation in Indonesia

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

Financial Profitability and Sensitivity Analysis of Palm Oil Plantation in Indonesia

Popis výsledku v původním jazyce

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

Název v anglickém jazyce

Financial Profitability and Sensitivity Analysis of Palm Oil Plantation in Indonesia

Popis výsledku anglicky

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

Druh

J_x - Nezařazeno - Článek v odborném periodiku (Jimp, Jsc a Jost)

CEP obor

GA - Zemědělská ekonomie

OECD FORD obor

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Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2015

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis

ISSN

1211-8516

e-ISSN

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Svazek periodika

63

Číslo periodika v rámci svazku

4

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

9

Strana od-do

1365-1373

Kód UT WoS článku

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EID výsledku v databázi Scopus

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