CHOICE BETWEEN TWO ALTERNATIVE INVESTMENT PROJECTS IN DAIRY CATTLE BREEDING
Tsvetana S. Harizanova-Metodieva
Pages: 174-186
Published: 1 Jan 2013
Views: 306
Downloads: 37
Abstract: The aim of the study is to propose an approach for assessing two alternative investment projects in dairy cattle breeding – the first with 70 cows in the main herd and the second with 120 cows. It was carried out an estimation of the necessary investment cash flows, cash inflows and outflows, based on information from a dairy cattle farm first category in Northwest region of Bulgaria and author’s own calculations. Both projects have a positive NPV. IRR and MIRR of the both projects are larger than the discount rate, which means that their implementation is economically feasible. The second project much better uses the investments compared to the first investment project and it creates preconditions for the realization of economies of scale as a result of allocation of investments over a larger number of animals in the main herd.
Keywords: cattle breeding, return, net present value, investments, investment project
Cite this article: Tsvetana S. Harizanova-Metodieva. CHOICE BETWEEN TWO ALTERNATIVE INVESTMENT PROJECTS IN DAIRY CATTLE BREEDING. Journal of International Scientific Publications: Agriculture & Food 1, 174-186 (2013). https://www.scientific-publications.net/en/article/1002913/
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