20. Feasibility study of an investment business plan for the establishment of an apiary

Author: Vasko Koprivlenski

DOI: n/a

Abstract

The purpose of the article is to analyze and assess the economic suitability of an investment business project to build an apiary with 80 beehives. The project was developed as a long-term production program organization and management of financial and material resources to achieve economic, social and environmental efficiency of production of honey, wax and propolis. The channels and marketing conditions of production were specified by means of a market research. Technological, financial and economic estimates showed the following: the total investment costs of establishing and growing the apiary were 25,101.40 levа; operating costs, on average for each year of the planning period were 5,423.85 leva, and projected revenues – 13,264 leva, 96% were from the sale of honey; the critical level of the average yield and cost of production decreased every year; The net present value (NPV) was positive – 4,915.85 leva; the internal rate of return (IRR) of 13.4% exceeded the discount rate percentage by 3.4 points; the deadline for purchase of the investment was 38 months; the profitability index was 1.23; the coefficients of correlation between “income and expenses” in the planning period of the project were higher than one; the investment project is acceptable, effective and financially attractive and ensuring successful business.