Bush tomato: New investment  20 year analysis 

Discount Rate: 
7% 

Net Present Value of project 
$369,592 
Very Favourable Outcome 

Internal Rate of Return 
119% 
Very Favourable Outcome 

Benefit:Cost Ratio 
1.60 
Very Favourable Outcome 

Sensitivity Analysis: 

Net Present Value with: 
Discount rate 
5%NPV = 
$ 445,320  Not sensitive 

Discount rate 
9%NPV = 
$ 309,884  Not sensitive 

Internal Rate of return with: 
Returns decreased by 
10%/96% 
Sensitive 

Total capital increased by 
10%/110% 
Not sensitive 

Seasonal inputs increased by 
10%/109% 
Not sensitive 



Net Present Value equals ZERO at standard discount rate with & (sic) 

Returns decreased by

38%  Outcome not sensitive to yield / price assumptions 

Investment increased by

949%  Outcome not sensitive to investment expenditure assumptions 

Seasonal inputs increased by 
69% 
Outcome not sensitive to seasonal input assumptions  
Breakeven Analysis: 

The enterprise breaks even in year 
4 
Bush tomato: Additional investment  20 year analysis 

Discount Rate: 
7% 

Net Present Value of project 
$361,104 
Very Favourable Outcome 

Internal Rate of Return 
89% 
Very Favourable Outcome 

Benefit:Cost Ratio 
1.58 
Very Favourable Outcome 

Sensitivity Analysis: 

Net Present Value with: 
Discount rate 5% 
NPV = 
$ 435,625 
Not sensitive 

Discount rate 9% 
NPV = 
$ 302,340 
Not sensitive 

Internal Rate of return with: 
Returns decreased by 
10% 
75% 
Sensitive 

Growing costs increased by 
10% 
83% 
Not sensitive 

Threshold Analysis: 

Net Present Value equals ZERO at standard discount rate with & (sic). 

Returns decreased by 
37% 
Outcome not sensitive to yield / price assumptions 

Growing costs increased by 
67% 
Outcome not sensitive to seasonal input assumptions 

Breakeven Analysis: 

The enterprise breaks even in year 
4 
Bush tomato: YIYO Gross Margin 

Income: 
4,000 kg/ha @ $15/kg 
$60,000 

Variable costs: 

$36,278 


Gross Margin: 
$23,722 per ha 

Gross Margin/ha sensitivity to yield and price 

Average price ($/kg) 

$ 11.00 
$ 13.00 
$ 15.00 
$ 17.00 
$ 19.00 

3900 
$ 6,622 
$ 14,422 
$ 22,222 
$ 30,022 
$ 37,822 

3950 
$ 7,172 
$ 15,072 
$ 22,972 
$ 30,872 
$ 38,772 

Average yield (kg/ha) 
4000 
$ 7,722 
$ 15,722 
$ 23,722 
$ 31,722 
$ 39,722 

4050 
$ 8,272 
$ 16,372 
$ 24,472 
$ 32,572 
$ 40,672 

4100 
$ 8,822 
$ 17,022 
$ 25,222 
$ 33,422 
$ 41,622 