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Research Article |

Economic and Financial Viability of Biofortified Sweetpotato Production in Nova Soure - Bahia

The economic and financial viability analysis of a R$ 60,000.00 investment project was made for the production of biofortified Brazilian sweetpotatoes, in the rural community of ‘Panasco’, Nova Soure municipality in the northeast region of Bahia. The Minimum Attractiveness Rate varied in three scenarios: 10%, 11.50%, and 13.75%. The study used the Multi-Index Methodology to evaluate the return and risk attributes inherent to the investment project. After a detailed analysis of each attribute, investors accepted the TMA of 11.50%, and the indicators resulted in Present Value R$ 70,895.00, Net Present Value R$ 10,895.00, Annualized Net Present Value R$ 2.612,53, Cost Benefit Ratio R$ 1.18, Additional Return on Investment 2.82%, ROIA/TMA 24.52%, Internal Rate of Return 17.65%, Payback of 5 years, Payback/Horizon of 83.33% and TMA/IRR 65.16%. The Business Risk was evaluated with the cross-SWOT analysis. The Revenue Commitment Degree indicated that 68.72% of the revenue is committed to the full payment of the bills that make up the break-even point, with 31.27% of the revenue is taken as profit from the activity. Management Risk was accessed through a nine-point structured quiz so the investors pointed out that the Process and Social areas have greater control, but the Commercial and Administrative areas require greater attention in terms of business strategy. The project was approved, and the funding will be made for an agricultural work period of six years.

Sweetpotato, Economic Analysis, Financial Analysis, Agricultural Project Feasibility, Multi-Index Methodology

APA Style

Claudio Eduardo Cartabiano Leite, Micael Andrade da Costa, André Ricardo Zeist, Débora Pantojo de Souza. (2023). Economic and Financial Viability of Biofortified Sweetpotato Production in Nova Soure - Bahia. Plant, 11(4), 109-121. https://doi.org/10.11648/j.plant.20231104.11

ACS Style

Claudio Eduardo Cartabiano Leite; Micael Andrade da Costa; André Ricardo Zeist; Débora Pantojo de Souza. Economic and Financial Viability of Biofortified Sweetpotato Production in Nova Soure - Bahia. Plant. 2023, 11(4), 109-121. doi: 10.11648/j.plant.20231104.11

AMA Style

Claudio Eduardo Cartabiano Leite, Micael Andrade da Costa, André Ricardo Zeist, Débora Pantojo de Souza. Economic and Financial Viability of Biofortified Sweetpotato Production in Nova Soure - Bahia. Plant. 2023;11(4):109-121. doi: 10.11648/j.plant.20231104.11

Copyright © 2023 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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