28. Economic parameters and efficiency of an investment model for the building of a vineyard

Author: Vasko Koprivlenski


The study offers economic and technological parameters for the building of a vineyard of 200 dka. They provide maximum manifestation of the capabilities of the technology and are in compliance with the agritechnical and biological requirements of the Cabernet Sauvignon variety. The project is designed for 25 years and covers the period from the establishment of the plantation till achieving maximum performance (threshold of production). The amount of funds for the creation of the vine plantation is 327,611 BGN; the funds necessary for the holding period to talled 623,375 BGN., (3,117 BGN/dka), and the projected revenue is 2,566,800 BGN; the Net Present Valueis positive – 51,120.33 BGN; the Internal Rate of Returnis 5.80%; the payback period of the investment is 9 years; the Profitability Indexis 1.17; the ratio revenue – expenses for the lifetimeis 2.7, which shows that the income exceeds the aggregate expenditure. The investment project is economically viable, effective, financially attractive and ensuring a successful business.

Key words: vineyard, investments, Net Present Value, Internal Rate of Return, Profitability Index