Economic parameters and efficiency of an investment model for the building of a vineyard
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DOI: 10.22620/agrisci.2016.20.028
Author: Koprivlenski Vasko
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 totalled 623,375 BGN., (3,117 BGN/dka), and the projected revenue is 2,566,800 BGN; the Net Present Value is positive – 51,120.33 BGN; the Internal Rate of Return is 5.80%; the payback period of the investment is 9 years; the Profitability Index is 1.17; the ratio revenue – expenses for the lifetime is 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.