by Salah S. Abd El-Ghani, Dalia M. Nasr El Batran, Ahlam Ahmed Ismail, Tamer G. I.Mansour
ABSTRACT
Dairy processing projects, particularly yogurt production, are characterized by low initial capital requirements compared to other dairy projects such as cheese production. Additionally, these projects have a fast-working capital cycle, as costs can be recovered in a short period, making them attractive to young people and graduates seeking employment opportunities. The problem of the study lies in seeking to enhance the economic efficiency of some existing agricultural investment projects in Dakahlia Governorate, by conducting a financial evaluation of these projects under certain assumptions aimed at achieving the maximum possible economic efficiency. This is intended to provide investors with a clear picture of the actual status of the project under study, enabling investors to utilize their funds with the highest possible efficiency. The most important results were that that the project achieves a positive net present value (NPV) estimated at 602,316.37 EGP/year at a discount rate of 15%. It also indicates that the ratio of discounted cash inflows to discounted costs is > 1, with the discounted profitability index for this project reaching approximately 1.26, a value greater than one. This means that each invested pound generated a net return of 26 piasters. The results of the sensitivity analysis for the yogurt project reveal the project’s sensitivity to a 5% increase in production costs, As A 5% increase in raw material costs led to a decrease in the net present value from 602,316.37 EGP to 485,49 EGP. It also caused the profitability index to decline from 1.26% to 1.20%. Based on the above results, It is also clear that the project has low sensitivity to any decrease in revenue, indicating that the project is economically feasible at present. However, its sensitivity to any future changes would increase
