Financial analysis in agricultural project preparation

Financial analysis provides a practical means of assessing the profitability of investments and their likely financial impact on potential investors including farmers. Assuming familiarity with the mathematics of discounting, this paper concentrates on agricultural projects that are revenue-generating entities likely to maintain a full set of accounts for analysis. Emphasis is placed on the discussion of concepts and techniques in order to provide users with an analytical framework for a systematic financial appraisal of a project.