<b>Assessment of economic feasibility and risk of a small scale bean production unit in the Municipality of Campo Mourão

  • Glauber Flaviano Silveira Fundação João Pinheiro
  • Vinícius Gonçalves Vidigal Fundação João Pinheiro
Keywords: net present rate, internal rate of return, payback period, Monte Carlo simulation, sensitivity analysis

Abstract

Due to the importance of family farming especially in bean cultivation in the state of Paraná, Brazil, current assay evaluates the economic viability and risk of bean production on a family farm in Campo Mourão (northwestern region). Economic viability indicators have been assessed, such as net present rate value (NPR), internal rate of return (IRR) and payback period (PP). Further, sensitivity analysis and risk analysis were carried out with Monte Carlo simulation method. Results indicated the project´s economic viability. Moreover, their viability was more sensitive to revenue components than that of costs. These factors did not warrant significant risk to the project´s success.

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Author Biography

Glauber Flaviano Silveira, Fundação João Pinheiro

Mestre em Economia Aplicada pela Universidade Federal de Viçosa (UFV), Especialista em Economia Empresarial pelo Instituto de Educação Continuada da Pontifícia Universidade Católica de Minas Gerais (PUC-MG).

Published
2014-12-05
How to Cite
Silveira, G. F., & Vidigal, V. G. (2014). <b&gt;Assessment of economic feasibility and risk of a small scale bean production unit in the Municipality of Campo Mourão. Acta Scientiarum. Human and Social Sciences, 36(2), 169-175. https://doi.org/10.4025/actascihumansoc.v36i2.23500
Section
Economy