RESULTS:

COMPUTATION OF INTERNAL RATE OF RETURN

YEAR

GROS

COST
GROSS
PROFIT

INCREME

NTAL
CASH

FLOW

DISCOUNT

FACTOR

20%

DISCOUNT

FACTOR.

32.49%

DISCOUNT

FACTOR.

55%

PRESENT

WORTH

AT 20 %

PRESENT

WORTH

AT

32.49%

PRESENT

WORTH

AT 55%
1
11.82
4.16
-7.66
0.83333333
0.75477395
0.64516129 -6.383333
-
5.7815684 -4.941935
2
3.2
6.59
3.39
0.69444444
0.56968371
0.41623309
2.354167 1.9312278 1.4110302
3
3.12
6.8
3.68
0.57870370
0.42998242
0.26853748
2.12963
1.5823353 0.9882179
4
3.02
7.18
4.16
0.48225309
0.32453953
0.17324999
2.006173 1.3500844 0.7207199
5
2.9
7.52
4.62
0.40187757
0.24495398
0.11177418
1.856674 1.1316874 0.5163967
6
2.86
7.9
5.04
0.33489798
0.18488488
0.07211238
1.687886 0.9318198 0.3634464
7
2.69
8.28
5.59
0.27908165
0.13954629
0.04652411
1.560066 0.7800638 0.2600698
8
2.54
8.68
6.14
0.23256804
0.10532590
0.03001556
1.427968 0.6467011 0.1842955
9
2.34
9.1
6.76
0.19380670
0.07949725
0.01936488
1.310133 0.5374014 0.1309066
10
2.25
9.53
7.28
0.16150558
0.06000245
0.01249347
1.175761 0.4368179 0.0909524
TOTAL
36.74
75.74
39
4.19247209
2.89319036
1.79546642
9.125124 3.5465704
-0.2759
IRR=55%
COMPUTATION OF NET PRESENT WORTH
YEAR
GROSS
COST
DISCOUNT
FACTOR 14%

PRESENT

WORTH

AT 14 %
GROSS
PROFIT
DISCOUNT

FACTOR

14%

PRESENT

WORTH

AT 14 %
1
11.82
0.877192982
9.80701754
4.16
0.87719298 3.6491228
2
3.2
0.769467528
2.46229609
6.59
0.76946753 5.070791
3
3.12
0.674971516
2.10591113
6.8
0.67497152 4.5898063
4
3.02
0.592080277
1.78808244
7.18
0.59208028 4.2511364
5
2.9
0.519368664
1.50616913
7.52
0.51936866 3.9056524
6
2.86
0.455586548
1.30297753
7.9
0.45558655 3.5991337
7
2.69
0.399637323
1.0750244
8.28
0.39963732 3.308997
8
2.54
0.350559055
0.89042
8.68
0.35055905 3.0428526
9
2.34
0.307507943
0.71956859
9.1
0.30750794 2.7983223
10
2.25
0.26974381
0.60692357
9.53
0.26974381 2.5706585
total
36.1
5.216115646
22.2643904
75.74
5.21611565 36.786473
NET PRESENT WORTH =36.78-22.26

=14.52

COMPUTATION OF BENEFIT COST RATIO:

BENEFIT COST RATIO=36.78/22.26

=1.65
REFERENCE:
• Merle H.Jensen, Alan J.Malter. Protected agriculture. pp 93.
• Steve Mitchell, David Bain Bridge, University of California.
Sustainable Agriculture For California. pp 167.
• Harrison C.H. Tending the garden state. pp 156,157.
• Zahid Baig (2007), Off season vegetables and fruits: farmers to be
trained in tunnel technology.
•

Pakistan horticulture development and export board, 2003. Pre-

feasibility study Off-season vegetables. Document No. PREF-002
•

Small and Medium Enterprise Development Authority (SMEDA),

2007. Pre-feasibility study off-season vegetable farming (Low tunnel).
Document No. PREF-55
•

Farid S.S.(2007). Investment opportunity profile for off season

vegetable farming in NWFP. .(www.unido.org/fileadmin/ext-media