Abstract
The research aimed to study the financial evaluation of the cultivar barley units in the Shalateen area in the Red Sea Governorate, as one of the means used in providing green fodder for animal feeding, especially sheep, goats and camels. The research led to a set of results, including: (1) net present value when the discount rate is 9% about 2.445 million pounds, which indicates the feasibility of investment in this activity. (2) the internal rate of Return(IRR) was about 33.53%, which is more than the borrowing interest of the capital represented by the prevailing commercial interest rate, which confirms the feasibility of investing in the activity of cultivated barley. (3) the benifit cost ratio was estimated at 1.176 any larger than one, which indicates the feasibility of the investment. (4) the Pay-back Period (PBP) was estimated at 1.714 years, which indicates the possibility of recovering the invested capital within two years from the start of the project . (5) the return on investment rate was about 27.12 %.(6) sensitivity analysis of barley cultivation units has been carried out, however, the internal rate of Return is still greater than the opportunity cost of capital investment in the community and therefore it is recommended to make the decision to accept investment in barley cultivation units. Therefore, the research recommends the need for expansion in the cultivation of cultivar barley, especially in desert areas with low pastoral Plants.
Highlights
The research aimed to study the financial evaluation of the germinated barley units in the Shalateen area in the Red Sea Governorate, as one of the means used in providing green fodder for animal feeding, especially sheep, goats and camels, by achieving the following sub-objectives: 1- Estimation of costs and revenues of units of germinated barley
The research led to a set of results, including: (1) Net present value when the discount rate is 9% about 2.445 million pounds, which indicates the feasibility of investment in this activity
(2) The internal rate of Return (IRR) was about 33.53%, which is more than the borrowing interest of the capital represented by the prevailing commercial interest rate, which confirms the feasibility of investing in the activity of germinated barley
Summary
The research led to a set of results, including: (1) Net present value when the discount rate is 9% about 2.445 million pounds, which indicates the feasibility of investment in this activity. (2) The internal rate of Return (IRR) was about 33.53%, which is more than the borrowing interest of the capital represented by the prevailing commercial interest rate, which confirms the feasibility of investing in the activity of germinated barley. (3) The benefit cost ratio was estimated at 1.176 any larger than one, which indicates the feasibility of the investment. (4) The Pay-back Period (PBP) was estimated at 1.714 years, which indicates the possibility of recovering the invested capital within two years from the start of the project. (5) The return on investment rate was about 27.12%. (6) From the analysis of the sensitivity of barley growing units, it is clear that they are sensitive to increasing costs on the one hand, and decreasing revenues on the other, and to increasing costs and decreasing revenues on the other, but the degree of sensitivity to falling revenues is greater than the degree of sensitivity to rising costs.in the case of reducing the life of the project to only 7 years, the project has not shown much sensitivity compared to the case of increasing costs or decreasing revenues, the internal rate of return remains greater than the opportunity cost of investing capital in the community, and it is advisable to take the decision to accept investment in barley growing units.
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