RRI Publications

Permanent URI for this communityhttps://dl-rri.nsf.gov.lk/handle/1/3

Browse

Search Results

Now showing 1 - 2 of 2
  • Thumbnail Image
    Item
    Economics of reinvestment on rubber in the estate sector
    (Rubber Research Institute. Agalawatta, 1997) Samarappuli, I.N.; Wickramaratne, C.S.; Dias, D.G.S.
    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.
  • Thumbnail Image
    Item
    Economics of interplanting rubber with tea in the low country wet zone
    (Rubber Research Institute of Sri Lanka. Agalawatte, 1995) Yogaratnam, N.; Samarappuli, I.N.; Iqbal, S.M.M.
    This study examines the economic viability of interplanting rubber with tea in the low country wet zone, where cultivation of both these crops is agronomically feasible. In the analysis, apart from Net Present Value(NPV), other measurments of project worth have also been used to determine the return on investment. Economic lifespan of a 25 years is considered for discounted cash flow analysis. The results reveal the profitability of this intergrated farm activity, which generates a NPV of nearly RS 162,000 at 15 per cent discount rate. The B/C ratio, net benefit investment ratio and IRR are 1.24, 3.73 and 31 per cent respectively. The pay back period of 5 years also emphasizes the economic feasibility of the investment. Sensitivity analysis on certain parameters have been done to ascertain the economic viability. The conclusion is that commencement of interplanting rubber with tea in the law country wet zone, atleast on a limited scale is economically desirable.