Research Reports
Project Feasibility Study of Overseas Agricultural Development
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AuthorKim, Byoungryul
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Publication Date2011.11.30
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Original
Overseas agricultural development has been rapidly increasing since 1990s which trend is anticipated to continue in future. Although the importance of overseas development project and the project feasibility study increase recently, the financial and the economic studies of those are still insufficient. Thus it's necessary to properly set up accuracy of project feasibility study and its thorough analysis in order to win project on successful overseas agricultural development and investment. The purpose of this research is to evaluate the variation of the projects using feasibility study.
For this purpose, this research considered the several check factors such as country risk, interest rate, and exchange rate for project feasibility study, which is to improve the accuracy and reliability of decision making. Especially, this research has one major difference between the previous other feasibility study methods concerns the way in which this study use computer program. COMFAR Ⅲ Expert was used and which is a computer program which supports project pre-investment studies. It facilitates data organization, computations and the production of pro-forma reports on financial and economic performance. Thus, the results of this research are as follows.
The study analyzed the economic feasibility study on their projects using the analysis of financial statements on two successful projects which are 'Dol-nara Co.' and 'Chungdam O.A.D. Farm Corp.', respectively, Both of them have project feasibility, which indicate NPV-values of them are bigger than zero and also IRR of them are bigger than WACC using applying the variation conditions which are the fluctuation of country risk, unit price, management cost and so on. This research is meaningful for laying the foundation of the overseas agricultural development and the feasibility study as well as the accuracy of feasibility study. This research put it significance in applying the variation conditions of project feasibility anaysis and suggesting importance for a successful analysis of project feasibility. Especially, the application of the project variation conditions make it possible to forecast various risks, thus, effective project feasibility being expected to be actualized.
Researchers: Kim, Byeong-Ryul; Lee, Byoung-Hoon; Jun, Ik-su; Yoon, Jong-Yeol; Min, Ja-Hye
E-mail address: brkim@krei.re.kr
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