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TEAK PLANTATIONS IN NILAMBUR - Kerala Forest Research Institute

TEAK PLANTATIONS IN NILAMBUR - Kerala Forest Research Institute

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flow from teak plantations in Nilambur Divisions with low and high yields<br />

respectively.<br />

Tables 4.3, 4.4 and 4.5 show the Net Present Value (NPV) and B/C ratio<br />

(BCR) at different discount rates and Internal Rate of Return (IRR) of teak<br />

plantations in Nilambur Divisions with land rent zero, Rs. 1300 and Rs. 2500<br />

respectively. Four different discount rates 6, 9, 12 and 18 percent are used in<br />

the calculation of NPV and B/C Ratio.<br />

Table : 4.3<br />

NPV and B/C ratio at different discount rates and IRR of teak plantations in<br />

Nilambur Divisions without land rent<br />

Yield<br />

m3/ha/yr<br />

Low 0.973<br />

Mean 2.854<br />

High 5.641<br />

Discount rate<br />

6% 9% 12% 18% IRR<br />

NPV BCR NPV BCR NPV BCR NPV BCR (%)<br />

42 2.9 9 1.5 -1 1.0 -5 0.6 11.7<br />

191 7.5 79 4.6 40 3.2 15 2.0 31.3<br />

385 10.9 165 7.0 90 5.1 40 3.4 46.4<br />

NPV - Net Present Value [in Rs ‘000]<br />

IRR - Internal Rate of Return<br />

BCR - Benefit Cost Ratio<br />

37

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