Course Content
Behavioral relationship of bio-mass
Population and its relationship with resource depletion
Interrelationship between different components of Nepalese farming system
Nutrients cycle
Natural and agricultural resource conservation strategies
Use of limited farm resources for economic management
Learn agricultural and environmental economics – B.Sc agriculture
About Lesson

I) Simple rate of return :

– Express average annual net income as % of  the  initial amount invested in the projet.

SRR = Y-D / I

where , Y = Average annual net income

D= Annual depreciation

I= Initial investment

SRR> required rate of return ,  project accepted.

ii) Pay back period :

– Length of time required to recover the initial investment .

Pay- back period = Initial investment / annual  cash flow.

– Shorter the pay back period , project is beneficial , hence accepted.

Advantages :

a) Simple in both concept an evaluation.

b) Rough and ready method for dealing with the risk.

Limitations :

a) Fails to reconsider time value of money.

b) Ignores cash flow beyond pay back period.

Iii) Proceeds per unit of outlay :

    Proceeds  per unit  of outlay = Total value of  incremental  production/ Total amount of investment

iv) Break even analysis :

– Point at which , company is neither at profit  nor at  loss.

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