5. COST-BENEFIT ANALYSIS

The object of the following section is to assess the expected financial return from different fish-farming development and management options possible in Zambia. It was agreed with project management that O. andersonii was the best species of fish to use.

The first part describes fish-farm designs where distribution of pond area between breeding, rearing and production ponds has been set such as to obtain optimal yields, taking into account main characteristics of the fish species on the total climatic factors.

This fish-farm design has been submitted in two farm size options (5 HA and 10 HA) and three production pond size options (5000 m², 2500 m², 1500 m²) to Brunelli Construction Ltd., which has experience in fish-farm development. Brunelli construction has later submitted pro forma budgets for each development option. Their total cost are found in Annex 5. Those costs were estimated for a site located within a 30 km distance from the city of Lusaka, but Brunelli Construction affirmed that they would be similar in the Copperbelt area.

In the following part, four different management options are explained and analyzed from an economic point of view: direct feed, chicken manure, pig-cum-fish and duck-cum-fish.

The expected return from the different options are later computed and analyzed so as to identify the most attractive ones.

5.1 Farm-Design

Design of fish-farm were prepared for 5 ha, 10 ha, 15 ha and 20 ha farm (area under water), assuming the use of three different sizes of production ponds, that is 15 ares, 25 ares and 50 ares. The objective was to estimate the trade-off between construction costs which are lower with larger size ponds and yields which are higher on smaller ponds. Design of fish-farms was elaborated on the basis of the following assumptions.

5.1.1 Breeding ponds: Stocking density: 25 females, 5 males/are.

Climatic factors limit the breeding season to the period between mid-September and end of May. During that period it is assumed that each female yields a total supply of 300 fingerlings which is harvested in 14 seinage operation, performed every second week between end of October and end of May. Thus it is assumed that within that period, on average, each female produces 300÷14 = 21.4 fingerlings per seinage. To ease seinage operations, breeding ponds whould be rectangular in shape. Their size should not exceed 10 ares. Experience at Chilanga fish-farm indicate that concrete walls have no positive impact. Therefore their use is not prescribed for commercial fish-farm. All breeding ponds are seined on the same day and fingerlings harvested are stocked in a rearing pond or set of rearing ponds.

5.1.2 Rearing ponds:

Fingerlings are transferred from breeding ponds to rearing ponds at a weight varying between 0.5 to 4 grammes. The rearing pond cycle is 13 weeks, at the end of which fingerling reaches an average weight of 20 grams. Stocking density in rearing pond can vary from 20 to 30 per m². A stocking density of 25/m² has been assumed. It is also assumed that rate of mortality is 10%. Due to the limited breeding season and cycle duration, each rearing pond is stocked only twice in the year. Therefore 7 rearing ponds or sets of rearing ponds are required.

5.1.3 Production ponds

Production ponds are stocked at a rate of 2.5/m². There are 2 production cycles per year. For the Lusaka area the months of June and July which are the coldest of the year are not counted as part of production cycle as the growth opened during that period is insignificant. Therefore 5 months production cycles are assumed for that area. Yields would be higher in the Copperbelt area where temperatures are higher all year round.

Total area allocated to breeding ponds should be at least of area allocated to production ponds in order to obtain the number of fingerlings required for two production cycles.

Production ponds are designed in sets of 1, 2, 3 or more, depending of the size of the farm, each set being stocked at the same time. To each set of production ponds corresponds a set of rearing ponds with, total area of

The following table illustrates the balance between breeding, rearing and production operations. Rearing pond cycles last 13 weeks but it is assumed that fingerlings born in the second half of breeding season will stay longer in rearing ponds, waiting for a production pond to be ready for stocking. Each seinage operation of breeding ponds corresponds to a stocking operation of the rearing ponds. Each harvesting of a set of reading ponds corresponds to the stocking of a set of production ponds.

TABLE 5.1
STOCKING AND HARVESTING SCHEDULE

WEEK

SET OF
BREEDING PONDS

SET OF
REARING PONDS

SET OF
PRODUCTION PONDS

June & July
No Growth Period

Stock (Broodstock)

Se: Seinage

H: Harvest

St: Stocking

TABLE 5.2
5 HA COMMERCIAL FISH-FARM WITH 50 A PRODUCTION PONDS

BREEDING PONDS (3)	: 20 × 43.5 m = 8.70 a
(2)	: 20 × 40.5 m = 8.10 a
REARING PONDS (7)	: 30 × 18.5 m = 5.55 a
(1)	: 30 × 23 m = 6.90 a
PRODUCTION PONDS (8)	: 50 × 100 = 50.00 a
(1)	: 30 × 40 = 12.00 a

TABLE 5.3
5 HA COMMERCIAL FISH-FARM WITH 25 A PRODUCTION PONDS

Stocking: 3 production
ponds at time

BREEDING PONDS (4)	: 50 × 20 m = 10.0 a
REARING PONDS (5)	: 40 × 20 m = 8.0 a
(2)	: 10 × 25.0 m = 2.5 a
PRODUCTION PONDS (15)	: 50 × 50 m = 25.0 a
(2)	: 40 × 50 m = 20.0 a

TABLE 5.4
5 HA COMMERCIAL FISH-FARM WITH 15 A PRODUCTION PONDS

Production ponds to be
stocked at one time: 4

BREEDING PONDS (4)	: 20 × 39 m = 7.80 a
REARING PONDS (7)	: 20 × 32.5 m = 6.7 a
PRODUCTION PONDS (28)	: 30 × 50 m = 15.0 a

5.2 Base Capital Cost

The base capital cost covers investment which has to be made whichever management option is chosen. It includes:

Cost of pond construction, to be depreciated over a period of 20 years, from the quotation given by Brunelli Construction.
Cost of building a fence around the fish-farm (total area: 7.5 HA for 5 HA of fish ponds). Amortized on 10 years.
Cost of building closed and open warehouse, based on construction costs given by project management. Amortized on 20 years.
Cost of furniture (mission's estimate). Amortized on 20 years.
Cost of wheelbarrows and one team of oxen plus one cart required for transporting feed and other material (this solution is in favor among many farmers because of the high cost of spare parts for tractors). A new team is bought after 5 years. The old one is sold for K500/head. Cart and wheelbarrows are replaced every 5 years.
Cost of broodstock: there is a slight variation for this item because the breeding pond area varies for each option.

5.3 Basic Revenues and Expenses

Basic revenues are revenues from sales of fish based on K4/kg and three yields options: 4T/ha, 6T/ha and 8T/ha.

Basic expenses include cost of feed, or manure which varies with each option. The cost of transportation is estimated at K0.33/t/km, which is the figure used by Galaunia Farms. It has been assumed that this farm is located 30 km from its supply center. However, fish would be sold to traders at the farm, which is the usual practice.

Labor costs are based on a team of 5 laborers and one manager. Labor cost are based on a K3/day salary for laborers, and on payroll computed by Zambia Development Bank for a loan covering a commercial fish-farming development project. A K15000 annual labor is also equivalent to CPC Ltd payroll for a 7.5 ha fish-farm; therefore it is a conservative figure.

Cost of supplies (nets, shovels, buckets) is based on a K500 annual cost for the Chilanga station.

Contingencies item should cover cost of electricity (used only for incubators for ducks) and land taxes, which are less than K100 for an operation this size.

TABLE 5.5
5 HA FISH-FARM

Base Capital Cost

				K	No. of years
1)	Pond construction: (see annex)	5000m² ponds		280,650	20
		2500m² ponds		378,845	20
		1500m² ponds		473,398	20
2)	Other:
	Fencing
	(assuming 300 × 250m lot)
	1.8m high diamond wire: 1100m @ 300K/30m		11,100
	2mm plain wire: 3 rows of 1,000m @ 100K		300
	Poles (1 per 5m): 220 @ 6K		1,320
	Labor: 22 man days @ 3K		66	12,786	10
	Closed warehouse:	35m² @ 500K		17,500	20
	Open warehouse:	75m² @ 54K		4,050	20
	Office:	10m² @ 500K		5,000	20
	Furniture			500	20
	Cart (1)			3,000	5
	Team of oxen			1,800	5
	Wheelbarrows (2) @ K115			230	5
	Broodstock:
	5000m² pond: @ 4K/kg	1269 breeders, 0,3KG each		1,523	-
	2500m² ponds: @ 4K/kg	1200 breeders, 0.3KG each		1,440	-
	1500m² ponds: @ 4K/kg	936 breeders, 0.3KG each		1,124
	Contingency: 10%			4,600
	Sub-total	5000m² ponds		50,989
		2500m² ponds		50,906
		1500m² ponds		50,590
TOTAL BASE CAPITAL COST (1 + 2)
		5000m² ponds		331,639
		2500m² ponds		429,751
		1500m² ponds		523,988

5.3.1 Taxation

Tax on farm income is 15% on profit minus capital allowances (100% on buildings and development, 50% on other capital), with possibility of carrying losses against the following year's profit. (Loan of Zambia Development Bank for fish-farming development). Full tax computation is illustrated only for 5000m² pond option. For 2500m² and 1500m² pond size option, taxes are simply decreased in proportion to the increase in pond construction costs.

Revenues and expenses are assumed the same all through project life (20 years). At the end of the project, fixed assets and working capital are both liquidated.

5.4 Salvage value of assets

It is assumed that at the end of project life, fish-farm can be sold for initial value minus all concrete and block work which would eventually have to be replaced. Therefore salvage value of assets would include:

Establishment mobilization, temporary facilities, insurance bonds, supervision, etc.
Site clearance, bush clearing
Lump sum allowance for anthills or trees
Earthwork in excavation and placing to fill, with shaping and compaction
Open drainage channel.

5.5 Release of working capital

This item includes value of working capital, of broodstock and meat value of oxenteam estimated at K500/head.

It is assumed that the salvage value of assets, which have been fully written off the books, is an income added to the project of the farm and thus taxed at the same rate. Release of working capital is not an income and thus non taxable.

TABLE 5.6
ANNUAL COST OF LABOR AND MANAGEMENT

-5 HA FARM

FEED, CHICKEN LITTER, PIG-CUM-FISH
		K
	1 FARM MANAGER	6,000
	1 FARM SUPERVISOR	3,500
	5 LABORERS @ K 720	3,600
	OTHER LABOR COSTS	900
	TOTAL	14,000
DUCK-CUM-FISH
	1 FARM MANAGER	6,000
	1 FARM SUPERVISOR	3,500
	7 LABORERS @ K 720 YEAR	5,040
	OTHER LABOR COSTS	460
	TOTAL	15,000

-10 HA FARM

FEED AND FERTILIZER, CHICKEN LITTER, PIG-CUM-FISH
	1 FARM MANAGER	9,000
	2 FARM SUPERVISOR AT K 3,500	7,000
	10 LABORERS @ K 720	7,200
	OTHER LABOR COSTS	1,800
	TOTAL	25,000
DUCK-CUM-FISH
	1 FARM MANAGER	9,000
	1 FARM SUPERVISOR AT K 3,500	7,000
	14 LABORERS @ K 720	10,080
	OTHER LABOR COSTS	920
	TOTAL	27,000

5.6 Direct feed option

In the direct feed option, fish are fed with a mixture of maize bran and sunflower oil cake. Only light organic fertilizing is done from time to time.

Feed requirements are explained on the next table. Prices of sunflower cake and maize bran are based on ongoing prices in Lusaka (there are significant prices variations in price of maize bran according to source).

Working capital for feed option would have to last one year, until the first production ponds can be harvested.

TABLE 5.7
FEED REQUIREMENTS PER ARE, PER DAY

BREEDING PONDS

3% of mass of broodstock, weighing on average 300 g/fish

0,03 × 30 × 300 = 270 g

REARING PONDS

FIRST 13 WEEKS

6% of mass of fingerlings, weighing on average 15 g/fish
0.06 × 2500 × 15 = 2.250 kg
REST OF CYCLE (EXTENDED TIME IN REARING PONDS)

4% of mass of fingerlings, weighting on average 30 g
0.04 × 2500 × 30 = 3.0 kg

PRODUCTION PONDS

FISH HAVING COMPLETED 13 WEEKS CYCLE IN REARING PONDS

3% of total mass, assuming an average weight of 100 g/fish
0.03 × 250 × 100 = 0.750 kg
FISH HAVING COMPLETED 21 WEEKS CYCLE IN REARING PONDS

3% of total mass, assuming an average weight of 120 g/fish
0.03 × 250 × 120 = 0.900 kg

TABLE 5.8
FEED REQUIREMENTS, QUANTITIES AND COSTS

		BREEDING PONDS (34 WEEKS)	REARING PONDS		PRODUCTION PONDS		TOTAL QUANTITY (KG)	TOTAL COST* (K)
		BREEDING PONDS (34 WEEKS)	REGULAR CYCLE (2×13 WEEKS)	CYCLE EXTENSION** (8 WEEKS)	FIRST CYCLE	SECOND CYCLE	TOTAL QUANTITY (KG)	TOTAL COST* (K)
5 HA FISH FARM	5,000 m² PONDS	2,718	18,714	7,678	43,260	51,912	124,282	29,628
	2,500 m² PONDS	2,570	18,428	7,560	43,575	52,290	124,423	29,661
	1,500 m² PONDS	2,005	19,165	7,862	44,100	52,920	126,052	30,050
10 HA FISH FARM	5,000 m² PONDS	5,411	37,510	15,389	86,541	103,849	248,700	59,288
	2,500 m² PONDS	4,170	39,803	16,330	87,980	105,575	253,858	60,517
	1,500 m² PONDS	4,010	38,411	15,758	88,599	106,319	253,097	60,336

* Based on a mix of 50% sunflower cake (K327/T) and maizebran (K149.78/T)

** Period after rearing cycle, when fish are stocked, waiting for a production pond to be ready for stocking.

TABLE 5.9

OPTION I: DIRECT FEED

WORKING CAPITAL		K
FEED FOR ONE YEAR 126,052 KG (50% sunflower cake @ K327/T, 50% maize K149.78/T)		30,050
SUPPLIES (Nets, Shovels, Tools)		1,000
CASH: FOR TRANSPORTATION		1,247
	FOR SALARIES	14,000
CONTINGENCIES 10%		4,703
TOTAL		51,000

PROJECTED PROFIT AND LOSS STATEMENT
REVENUES		K
SALES: Low yields 4T/HA @ K4/KG		80,000
Medium yields 6T/HA @ K4/KG		120,000
High yelds 8T/HA @ K4/KG		160,000
EXPENSES
Direct costs
Feed		30,050
Transportation		1,247
Supplies		1,000
Salaries		14,000
Contingencies		4,703
TOTAL DIRECT COST		51,000
PROFIT BEFORE DEPRECIATION: Low		29,000
Medium		69,000
High		109,000
	5,000 m² Ponds	2,500 m² Ponds	1,500 m² Ponds
DEPRECIATION Pond	14,032	18,942	23,670
Fence	1,279	1,279	1,279
Building & Furniture	1,352	1,352	1,352
Other	806	806	806
TOTAL	17,469	22,379	27,107
PROFIT Low	11,531	6,621	1,893
Medium	51,531	46,621	41,893
High	91,531	86,621	81,893

TABLE 5.10
PROFIT TAX COMPUTATION, 5 HA FISH-FARM, 5,000 m² PONDS, DIRECT FEED OPTION

YEAR	PROFIT BEFORE DEPRECIATION			CAPITAL ALLOWANCES		LOSS BROUGHT FORWARD			TOTAL ALLOWANCE			TAXABLE INCOME			TAX (15%)
	PROFIT BEFORE DEPRECIATION			Buildings/ Development*	Other**	LOSS BROUGHT FORWARD			TOTAL ALLOWANCE			TAXABLE INCOME			TAX (15%)
	L	M	H	Buildings/ Development*	Other**	L	M	H	L	M	H	L	M	H	L	M	H
1	29,000	69,000	109,000	319,986	2,765	-	-	-	322,751	322,751	322,751	(293,751)	(253,751)	(213,751)	-	-	-
2	29,000	69,000	109,000	-	2,765	293,751	253,751	213,751	296,516	256,516	216,516	(267,516)	(187,516)	(107,516)	-	-	-
3	29,000	69,000	109,000	-	-	267,516	187,516	107,516	267,516	187,516	107,516	(238,516)	(118,516)	1,484	-	-	223
4	29,000	69,000	109,000	-	-	238,516	118,516	-	238,516	118,516	-	(209,516)	(49,516)	109,000	-	-	16,350
5	29,000	69,000	109,000	-	2,765	209,516	49,516	-	212,281	52,281	2,765	(183,281)	16,719	106,235	-	2,508	15,935
6	29,000	69,000	109,000	-	2,765	183,281	-	-	186,046	2,765	2,765	(157,046)	66,235	106,235	-	9,935	15,935
7	29,000	69,000	109,000	-	-	157,046	-	-	157,046	-	-	(128,046)	69,000	109,000	-	10,350	16,350
8	29,000	69,000	109,000	-	-	128,046	-	-	128,046	-	-	(99,046)	69,000	109,000	-	10,350	16,350
9	29,000	69,000	109,000	-	-	99,046	-	-	99,406	-	-	(70,046)	69,000	109,000	-	10,350	16,350
10	29,000	69,000	109,000	12,786	2,765	70,046	-	-	85,597	15,551	15,551	(56,597)	53,449	93,449	-	8,017	14,017
11	29,000	69,000	109,000	-	2,765	56,597	-	-	59,362	2,765	2,765	(30,362)	66,235	106,235	-	9,935	15,935
12	29,000	69,000	109,000	-	-	30,362	-	-	17,476	-	-	(1,362)	69,000	109,000	-	10,350	16,350
13	29,000	69,000	109,000	-	-	1,362	-	-	-	-	-	27,638	69,000	109,000	4,146	10,350	16,350
14	29,000	69,000	109,000	-	-	-	-	-	-	-	-	29,000	69,000	109,000	4,350	10,350	16,350
15	29,000	69,000	109,000	-	2,765	-	-	-	2,765	2,765	2,765	26,235	66,235	106,235	3,935	9,935	15,935
16	29,000	69,000	109,000	-	2,765	-	-	-	2,765	2,765	2,765	26,235	66,235	106,235	3,935	9,935	15,935
17	29,000	69,000	109,000	-	-	-	-	-	-	-	-	29,000	69,000	109,000	4,350	10,350	16,350
18	29,000	69,000	109,000	-	-	-	-	-	-	-	-	29,000	69,000	109,000	4,350	10,350	16,350
19	29,000	69,000	109,000	-	-	-	-	-	-	-	-	29,000	69,000	109,000	4,350	10,350	16,350
20	188,250	228,250	268,250	-	-	-	-	-	-	-	-	188,250	228,250	268,250	28,237	34,237	40,237

* POND CONSTRUCTION, FENCE, BUILDINGS, AT 100%

** FURNITURE CARTS & OXEN, WHEEL-BARROWS, AT 50%

TABLE 5.11
FINANCIAL RATE OF RETURN, 5 HA FISH-FARM, 5,000 m² PONDS, DIRECT FEED OPTION

YEAR	0	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20
CASH-INFLOWS
Profit L	-	11,531	11,531	11,531	11,531	11,531	11,531	11,531	11,531	11,531	11,531	11,531	11,531	11,531	11,531	11,531	11,531	11,531	11,531	11,531	11,531
M	-	51,531	51,531	51,531	51,531	51,531	51,531	51,531	51,531	51,531	51,531	51,531	51,531	51,531	51,531	51,531	51,531	51,531	51,531	51,531	51,531
H	-	91,531	91,531	91,531	91,531	91,531	91,531	91,531	91,531	91,531	91,531	91,531	91,531	91,531	91,531	91,531	91,531	91,531	91,531	91,531	91,531
Depreciation	-	17,469	17,469	17,469	17,469	17,469	17,469	17,469	17,469	17,469	17,469	17,469	17,469	17,469	17,469	17,469	17,469	17,469	17,469	17,469	17,469
Salvage value of assets	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	159,250
Release of working capital	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	53,523
TOTAL INFLOWS L	-	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	241,773
M	-	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	281,773
H	-	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	321,773
CASH OUTFLOWS
Fixed capital	331,639	-	-	-	-	4,030	-	-	-	-	16,816	-	-	-	-	4,030	-	-	-	-	-
Working capital	51,000	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Taxes L	-	-	-	-	-	-	-	-	-	-	-	-	-	4,146	4,350	3,935	3,935	4,350	4,350	4,350	28,237
M	-	-	-	-	-	2,508	9,935	10,350	10,350	10,350	8,017	9,935	10,350	10,350	10,350	9,935	9,935	10,350	10,350	10,350	34,237
H	-	-	-	223	16,350	15,935	15,935	16,350	16,350	16,350	14,017	15,935	16,350	16,350	16,350	15,935	14,935	16,350	16,350	16,350	40,237
TOTAL OUTFLOWS L	382,639	-	-	-	-	4,030	-	-	-	-	16,816	-	-	4,146	4,350	7,965	3,935	4,350	4,350	4,350	28,237
M	382,639	-	-	-	-	6,538	9,935	10,350	10,350	10,350	24,833	9,935	10,350	10,350	10,350	13,965	9,935	10,350	10,350	10,350	34,237
H	382,639	-	-	223	16,350	19,965	15,935	16,350	16,350	16,350	30,833	15,935	16,350	16,350	16,350	19,965	15,935	16,350	16,350	16,350	40,237
NET CASH FLOWS L	(382,639)	29,000	29,000	29,000	29,000	24,970	29,000	29,000	29,000	29,000	12,184	29,000	29,000	24,854	24,650	21,035	25,065	24,650	24,650	24,650	213,536
M	(382,639)	69,000	69,000	69,000	69,000	62,462	59,065	58,650	58,650	58,650	44,167	59,065	58,650	58,650	58,650	55,035	59,065	58,650	58,650	58,650	247,536
H	(382,639)	109,000	109,000	108,777	92,650	89,035	93,065	92,650	92,650	92,650	78,167	93,065	92,650	92,650	92,650	89,035	93,065	92,650	92,650	92,650	281,536

FINANCIAL RATE OF RETURN	L	5.5%
	M	16.1%
	H	26,1%

TABLE 5.12
FINANCIAL RATE OF RETURN, 5 HA FISH-FARM, 2,500 m² PONDS, DIRECT FEED OPTION

YEAR	0	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20
CASH-INFLOWS
Profit L	-	6,621	6,621	6,621	6,621	6,621	6,621	6,621	6,621	6,621	6,621	6,621	6,621	6,621	6,621	6,621	6,621	6,621	6,621	6,621	6,621
M	-	46,621	46,621	46,621	46,621	46,621	46,621	46,621	46,621	46,621	46,621	46,621	46,621	46,621	46,621	46,621	46,621	46,621	46,621	46,621	46,621
H	-	86,621	86,621	86,621	86,621	86,621	86,621	86,621	86,621	86,621	86,621	86,621	86,621	86,621	86,621	86,621	86,621	86,621	86,621	86,621	86,621
Depreciation	-	22,379	22,379	22,379	22,379	22,379	22,379	22,379	22,379	22,379	22,379	22,379	22,379	22,379	22,379	22,379	22,379	22,379	22,379	22,379	22,379
Salvage value of assets	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	193,245
Relense of working capital	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	53,440
TOTAL INFLOWS L	-	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	275,685
M	-	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	315,685
H	-	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	355,685
CASH OUTFLOWS
Fixed capital	429,751	-	-	-	-	4,030	-	-	-	-	16,816	-	-	-	-	4,030	-	-	-	-	-
Working capital	51,000	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Taxes L	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	1,637	4,350	4,350	4,350	33,337
M	-	-	-	-	-	-	-	8,064	10,350	10,350	8,017	9,935	10,350	10,350	10,350	9,935	9,935	10,350	10,350	10,350	39,337
H	-	-	-	-	1,843	15,935	15,935	16,350	16,350	16,350	14,017	15,935	16,350	16,350	16,350	15,935	15,935	16,350	16,350	16,350	45,337
TOTAL OUTFLOWS L	480,751	-	-	-	-	4,030	-	-	-	-	16,816	-	-	-	-	4,030	1,637	4,350	4,350	4,350	33,337
M	480,751	-	-	-	-	4,030	-	8,064	10,350	10,350	24,833	9,935	10,350	10,350	10,350	13,965	9,935	10,350	10,350	10,350	39,337
H	480,751	-	-	-	1,843	19,965	15,935	16,350	16,350	16,350	30,833	15,935	16,350	16,350	16,350	19,965	15,935	16,350	16,350	16,350	45,337
NET CASH FLOWS L	(480,751)	29,000	29,000	29,000	29,000	24,970	29,000	29,000	29,000	29,000	12,184	29,000	29,000	24,854	24,650	24,970	27,363	24,650	24,650	24,650	242,348
M	(480,751)	69,000	69,000	69,000	69,000	64,970	69,000	60,936	58,650	58,650	44,167	59,065	58,650	58,650	58,650	55,035	59,065	58,650	58,650	58,650	276,348
H	(480,751)	109,000	109,000	109,000	107,157	89,035	93,065	92,650	92,650	92,650	78,167	93,065	92,650	92,650	92,650	89,035	93,065	92,650	92,650	92,650	340,348

FINANCIAL RATE OF RETURN	L	3.7%
	M	12.5%
	H	20.6%

TABLE 5.13
FINANCIAL RATE OF RETURN, 5 HA FISH-FARM, 1,500 m² PONDS, DIRECT FEED OPTION

YEAR	0	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20
CASH-INFLOWS
Profit L	-	1,893	1,893	1,893	1,893	1,893	1,893	1,893	1,893	1,893	1,893	1,893	1,893	1,893	1,893	1,893	1,893	1,893	1,893	1,893	1,893
M	-	41,893	41,893	41,893	41,893	41,893	41,893	41,893	41,893	41,893	41,893	41,893	41,893	41,893	41,893	41,893	41,893	41,893	41,893	41,893	41,893
H	-	81,893	81,893	81,893	81,893	81,893	81,893	81,893	81,893	81,893	81,893	81,893	81,893	81,893	81,893	81,893	81,893	81,893	81,893	81,893	81,893
Depreciation	-	27,107	27,107	27,107	27,107	27,107	27,107	27,107	27,107	27,107	27,107	27,107	27,107	27,107	27,107	27,107	27,107	27,107	27,107	27,107	27,107
Salvage value of assets	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	239,598
Release of working capital	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	53,124
TOTAL INFLOWS L	-	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	29,000	321,722
M	-	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	69,000	361,722
H	-	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	109,000	401,722
CASH OUTFLOWS
Fixed capital	523,988	-	-	-	-	4,030	-	-	-	-	16,816	-	-	-	-	4,030	-	-	-	-	-
Working capital	51,000	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Taxes L	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	504	40,290
M	-	-	-	-	-	-	-	-	4,231	10,350	8,017	9,935	10,350	10,350	10,350	9,935	9,935	10,350	10,350	10,350	46,290
N	-	-	-	-	-	3,596	15,935	16,350	16,350	16,350	14,017	15,935	16,350	16,350	16,350	15,935	15,935	16,350	16,350	16,350	52,290
TOTAL OUTFLOWS L	574,988	-	-	-	-	4,030	-	-	-	-	16,816	-	-	-	-	4,030	-	-	-	504	40,290
M	574,988	-	-	-	-	4,030	-	-	4,231	10,350	24,833	9,935	10,350	10,350	10,350	13,965	9,935	10,350	10,350	10,350	46,290
H	574,988	-	-	-	-	7,626	15,935	16,350	16,350	16,350	30,833	15,935	16,350	16,350	16,350	19,965	15,935	16,350	16,350	16,350	52,290
NET CASH FLOWS L	(574,988)	29,000	29,000	29,000	29,000	24,970	29,000	29,000	29,000	29,000	12,184	29,000	29,000	24,854	24,650	24,970	29,000	29,000	29,000	28,496	281,432
M	(574,988)	69,000	69,000	69,000	69,000	64,970	69,000	60,936	64,769	58,650	44,167	59,065	58,650	58,650	58,650	55,035	59,065	58,650	58,650	58,650	315,432
H	(574,988)	109,000	109,000	109,000	109,000	101,374	93,065	92,650	92,650	92,650	78,167	93,065	92,650	92,650	92,650	89,035	93,065	92,650	92,650	92,650	349,432

FINANCIAL RATE OF RETURN	L	2.7%
	M	10.2%
	H	17.1%