Abstract
This paper describes how the software programme Computer Aided Simulation for Project Appraisal and Review (CASPAR) can be used to determine the commercial viability of an agricultural investment. A case study involving the purchase of a farm and subsequent crop production of tobacco and paprika over a ten-year operation period in a developing country is presented. Initially a base estimate is prepared and a risk analysis performed. Risks are then mitigated and the risk analysis is performed again. The results of the risk analysis can then be used as part of the business plan.
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