Opportunities for the smallholder sandalwood industry in ... - ACIAR

NPV accumulated cash flow (US$) (discount rate 10%)
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
–5,000
–10,000
Scenario 7: garden and sandalwood (1 ha) (2 × 15 yr rotations)
Scenario 8: garden and sandalwood (1 ha) (1 × 30 yr rotations)
0 1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930
Year from establishment
Figure 18. Net present value (NPV) accumulated cash flow for two 1 hectare planting models at a 10% discount
rate
NPV (US$)
340,000
320,000
300,000
280,000
260,000
240,000
220,000
200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
–20,000
Scenario 7: garden and sandalwood (1 ha) (2 × 15 yr rotations)
Scenario 8: garden and sandalwood (1 ha) (1 × 30 yr rotations)
1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930
Discount rate (%)
Figure 19. Net present value (NPV) profile for two different planting scenarios across discount rates from 1% to
30%. The internal rate of return is the discount rate at which the NPV equals zero.
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