Epsilon Archive for Student Projects

Abstract

To the economist an investment is a set of activities in investment capital for the production of economic benefits. As it usually comes to investing large amounts of cash with uncertain results, investment decisions are always risky business decisions. The efficiency of investment projects is evaluated by using economic, financial, technological, ecological-environmental and other efficiency indicators. Finance is the application of economic principles and concepts to business decision making and problem solving. The field of finance can be considered to comprise three broad categories: financial management, investments and financial institutions.
The financial analysis in it is broadest sense is analysis that has to do with budgets and finances over time. Within the analysis of the operation is perceived risk and return in order to make better decisions about investing or lending. Such analysis indicated the ability to see into the future, and it is therefore necessary to explain the past and provide a basis for projecting future earnings.
The prime aim of this study is to create a model which will create new income opportunities for farmers and promote sustainable agricultural practices. But most important is to get the most realistic indicators of economic effectiveness of investments in the agricultural sector. By understanding these indicators, farmers shall be able to independently evaluate the economic effects of the investments on their business which shall contribute to improvement of their farm management and decision making skills.
From the results which are generated by applying the methodology of sensitivity analysis, the conclusion is that in general these findings can help the farmers in terms of improving their planning, facilitate their decision making process and guide their financial health. Also this model allows to identify the investment opportunities, and provide the necessary information’s to facilitate a more efficient allocation and management of risk.