Net Present Value and Internal Rate of Return as indicators for assessment of cost-efficiency of poplar plantations: a Serbian case study

Keča, Ljiljana; Keča, Nenad; Pantić, Damjan

doi:10.1505/146554812800923345

Cited by 19 publications

(25 citation statements)

References 25 publications

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“…NPV included the diversity of perspective according to which economic convenience is analyzed in investment context, with respect to long-term theoretical analysis [55,56]. In fact, NPV does not base its judgment on maximizing incomes, but on maximizing wealth, represented by the difference between discounted gross income values generated during the investment life and the corresponding fixed costs (FC) [57].…”

Section: Financial Analysismentioning

confidence: 99%

Economic and Financial Comparison between Organic and Conventional Farming in Sicilian Lemon Orchards

et al. 2015

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Abstract:Sicily has a long tradition in citrus fruit cultivations that with vineyard and olive tree represent the main Mediterranean tree crops. In this paper we have evaluated the economic and financial sustainability of lemon production, both in organic farming and in conventional farming; the two systems differing just for inputs utilized in production process. Economic analysis has been carried out in a representative case study located in the Sicilian northwestern coast, considering an orchard economic life equal to 50 years. Results, which referred to one hectare area, showed both a higher economic and financial sustainability of organic farming respect to conventional farming. The higher profitability of organic farming was due to minor labor requirement and to greater market appreciation for organic products that granted a premium price respect to conventional prices. Moreover, greater profitability of organic farming and use of environmentally friendly inputs in production process make farms competitive and eco-friendly.

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Section: Financial Analysismentioning

confidence: 99%

Economic and Financial Comparison between Organic and Conventional Farming in Sicilian Lemon Orchards

et al. 2015

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“…Alluvial plains along the rivers Danube, Sava, Tisa, Ibar and Morava are suitable for the growth of several broadleaved tree species (Quercus robur L., Fraxinus angustifolia Vahl., Populus spp.). The high production potential of hybrid poplars led to an increase of natural stands and establishment of plantations along river banks (Keča et al 2012). Production potential and mechanical characteristics of the wood of P. × euramericana cl.…”

mentioning

confidence: 99%

“…According to the National Forest Inventory (NFI) poplar stands cover about 48,000 ha, or 2.1% of the total forest area in Serbia (Banković et al 2009). Some of the habitats along major rivers represent Europe's best sites for poplar growth, with timber volumes up to 605 m 3 ·ha -1 and an average of 350 m 3 ·ha -1 in 15-20 years (Keča et al 2012).…”

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confidence: 99%

Mycological complex of poplars in Serbia

Keča¹,

Milenković²,

Keča³

2015

J. For. Sci.

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Poplars are fast-growing broadleaved tree species inhabiting river banks and sites with accessible water supplies. Vegetative propagation makes them suitable for establishing highly productive plantations along big rivers and in flooded plains. The production of large quantities of biomass provides a good substrate for various organisms. The aim of this study was to identify fungal species occurring in the poplar plantations in Serbia and to determine their frequency and role in decomposition of tree parts. Fifty species belonging to the divisions Ascomycota, Basidimycota and Deuteromycota as well as two species from Oomycota (the genus Phytophthora) were reported. Bark was the substrate for 27 species, 14 species were found on leaves and 9 species were wood-decaying fungi.

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“…There are many methods to calculate returns of planted forest investment. Evison (2018) summarized the essentially two methods-some "analyses use stock market data on timberlands companies" (Ibbotson and Sinquefield 1976), and others collect typical data on costs revenues and yields so that an estimate of return can be calculated using discounted cash flow analysis and capital budgeting criteria (Ben-Horin and Kroll 2017), such as net present value (NPV), land expectation value (LEV) and internal rate of return (IRR) which were often used as indicators for assessing economic returns of planted forest (Cubbage et al 2007(Cubbage et al , 2010Keča et al 2012;Klemperer 1996;Wagner 2012). In addition, Cubbage et al (2014) and Wang et al (2014) had used NPV, LEV and IRR to evaluate the investment returns of planted forests in China and compared the results with other countries.…”

Section: Capital Budgeting Analysismentioning

confidence: 99%

“…1). NPV is used as one of the primary indicators for project evaluation (Keča et al 2012;Rocha 1973;Tee et al 2014). It is generally recommended as one preferred criterion in most forest economics textbooks (Klemperer 1996;Wagner 2012) and particularly useful with relatively shortterm forestry investments, such as fast-grown species (Cubbage et al 2013).…”

Section: Capital Budgeting Analysismentioning

confidence: 99%

An analysis of potential investment returns of planted forests in South China

Zhang

Yin

et al. 2019

New Forests

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Financial returns of forest plantations are an important concern around the world. In this research, we focused on South China's timber investments, collected data from the Pingxiang, Guangxi Province, China, which is the demonstration zone of Fast-growing and High-yielding Timber Plantation Base Construction Program and National Timber Strategic Storage and Production Bases Construction Program, and used capital budgeting analysis method and sensitivity analysis to compare different scenarios of planted forest management. The results showed that excluding land costs, (1) the financial returns of Eucalyptus forest managed by small business were excellent, having an IRR of 28% per year and a LEV of $7555 per ha, but it had a high risk with fluctuations of cost, timber price and timber yield; (2) the results for the Experimental Center of Tropical Forests indicate that the Eucalyptus forest and Castanopsis hystrix forest returns were greater than those for Cunninghamia lanceolata forest and Pinus massoniana forest, with having IRRs of 24%, 21%, 13% and 10% per year respectively. The mixed planted forest of Castanopsis hystrix × Eucalyptus and Castanopsis hystrix × Pinus massoniana had the features of high profits and low risks; (3) the forest farmers had lower levels of returns for Eucalyptus forest management in South China, but were still in the middle rank of global comparisons. This study gave a view of China's timber investment and provided more options of improving the economic returns of planted forest management to both small businesses and forest farmers in South China.

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Net Present Value and Internal Rate of Return as indicators for assessment of cost-efficiency of poplar plantations: a Serbian case study

Cited by 19 publications

References 25 publications

Economic and Financial Comparison between Organic and Conventional Farming in Sicilian Lemon Orchards

Economic and Financial Comparison between Organic and Conventional Farming in Sicilian Lemon Orchards

Mycological complex of poplars in Serbia

An analysis of potential investment returns of planted forests in South China

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