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TEAK PLANTATIONS IN NILAMBUR - Kerala Forest Research Institute

TEAK PLANTATIONS IN NILAMBUR - Kerala Forest Research Institute

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Table : 5.5<br />

Sensitivity analysis of teak plantations in Nilambur with land rent Rs.2500 while cost of<br />

plantation increased by 100°/o and price of teak remaining the same<br />

Yield<br />

m3ha -l yr-1<br />

LOW 0.973<br />

Mean 2.854<br />

Discount rate<br />

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

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

-22 1.0 -39 0.6 -39 0.4 -34 0.3 4.8<br />

119 3.1 27 1.9 -1 1.4 -16 0.9 11.9<br />

High 5.641 304 5.2 108 3.3 45 2.5 7 1.7 20.6<br />

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

IRR - Internal Rate of Return<br />

BCR - Benefit Cost Ratio<br />

Table : 5.6<br />

Maximum Land Rent possible for teak plantations in Nilambur under different<br />

discount rates with cost of plantation increased by 100% and price of teak remaining<br />

the same<br />

Yield<br />

m 3 ha -1 yr -l<br />

Low 0.973<br />

Mean 2.854<br />

High 5.641<br />

I<br />

Discount rates<br />

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

1250 -730 -1700 -2700<br />

9750 5000 2500 250<br />

20500 11500 7500 3750<br />

47

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