Economics of reinvestment on rubber in the estate sector
Date
1997
Journal Title
Journal ISSN
Volume Title
Publisher
Rubber Research Institute. Agalawatta
Abstract
Replanting of rubber is considered as a long term investment.This study investigates the financial viability of reinvestment on rubber with especial reference to estate sector in Sri Lanka.Economic life span of a 33 vear period is considered for the discounted cash flow analysis.The sample consisted of 135 rubber fields randomly selected from 15 large estates. The discounted cash flow analysis revealed a NPV of Rs.65,700 at 15% discount rate.The B/C ratio.Net Nenefit-investment ratio.IRR and pay Back period were 1.35.2.80.22 and 11 years respectively.Certain parameters were varied through sensitivity analysis to assess the economic viability of reinvestment on rubber under different scenarios.
Description
Keywords
Agriculture, Replanting, Production cost, Latex, Wood
Citation
Journal of the Rubber Research Institute of Sri Lanka79pp.45-61