THE EFFICIENCY OF INVESTMENT FOR PRODUCTION JOJOBA IN EGYPT | ||||
| Journal of Productivity and Development | ||||
| Article 4, Volume 17, Issue 3, August 2012, Page 305-316 PDF (454.08 K) | ||||
| Document Type: Original Article | ||||
| DOI: 10.21608/jpd.2012.42472 | ||||
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| Abstract | ||||
| This research aims to study the plant jojoba in the economic point of view because of its high importance for the Egyptian economy. The economical assessment experience of one feddan of Jojoba cultivation showed that the Net Present Value (NPV) was about 121 thousand pounds. While the Internal Rate of Return (IRR) value was about 37%. The IRR value is higher than the cost of the alternative available opportunity for capital investment in the community and the trade represented by the interest rate prevailing at the time of the study and of 11%. The index of the ratio of current benefits to current costs has been estimated at 1.8, i.e. larger than one. All the previous assessments of the economic indicators confirmed the profitability of investment in cultivating jojoba. This work presented different scenarios to measure the sensitivity of the project and its flexibility with the market mobility. The fifth scenario was the best one since it directs the production (crude oil) to the world market with selling price equal to 180 pounds/kg (30 US$) which recorded IRR value of 56%. The study recommends the deployment of jojoba cultivation and being considered as one of the strategic crops. | ||||
| Keywords | ||||
| The efficiency of investment; Jojoba; New lands; Sensitivity analysis | ||||
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