Economic analysis of private-owned ranges improvement. Confrontation of respective problems
Almost all plans of range improvement have an expected duration of use longer than a year. The economic analysis of these investment plans includes the comparison, per Ha, of the investment plan cost with the present value of the annual net inputs. Therefore, to make sure if an investment plan is profitable or not (acceptability criterion) or how much this plan is relatively profitable in comparison with other compatible or competitive investments (selection criterion), we must know the interest rate of loan of the invested capital as well as the opportunity cost of the same capital in conjunction with the use of some evaluation criteria. It is implied that if the investment includes some risk rate then this risk should be taken into consideration when evaluate the plan.
School of Forestry and Natural Environment Aristotle University of Thessaloniki, 540 06 Thessaloniki
Keywords:Economic analysis, private ranges, evaluation criteria, risk
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Book:RANGE SCIENCE AT THE THRESHOLD OF THE 21ST CENTURY - Proceedings of the 2nd Panhellenic Rangeland Congress in Ioannina, 4-6 October 2000 (Edited by: Thomas G. Papachristou & Olympia Dini)