A Financial Appraisal of Three Commercial Rattan Plantations
- Received Date: 1991-04-09
- Available Online: 2012-12-04
Abstract: This paper discussed and assessed the input,output and economic benefit of rattan plantation of three important commercial species,namely Calamus tetradactylus,C.simplicifius and Daemonorops margaritae in the management period of 25 years.Five commonly used techniques in economic evaluation viz (1) Net Present Value (NPV);(2) Ratio of the Net Present Value (NPVR);(3)Internal Rate of Return (IRR);(4) Benefit-Cost Ratio (B/C) and (5) Period of Investment Return (T) were utilised.Based on a 12 percent discounting rate,the appraisable results of three rattan plantations were as follows.The NPV was 3494.63,4657.72,16785.12 (yuan,RMB),bigger than zero;NPVR was 0.71,1.14,3.77;IRR was 25.95%,21.2%,28.71%,higher than the discounting rate;and B/C was 1.71,2.13,4.77 respectively,which indicated the favourable returns on investment in the cultivation of the three rattan plantations.The sensitivity analysis showed that the yield and price of rattan cane,as well as discounting rate were the sensitive factors of C.tetradactylus,C.simplicifius and D.margaritae respectively.The three sorts of plantations were vigorous capable of resistant to risk in economics.