Soya Bean Diesel Production Project for sustainability

Assignment

Two types of Soybeans are provided: Type A, and Type B. You are required to perform an economic analysis and recommend the best variety.

Background

Although soy beans are not currently commercially produced in the Northern Territory, there
is increasing interest in growing soy beans to supplement the supply available to the Darwin
Biodiesel plant. The Northern Territory climate is not conducive to all varieties of soy beans,
hence the choice of the two best performing varieties, Variety A and Variety B, will be the
focus of this study.

Task

A meeting of stakeholders has been arranged, and you have been approached to prepare a
structured technical presentation (powerpoint slides only) to be used by your consultancy’s
spokesperson to inform the stakeholders (who come from diverse backgrounds) of the
concept. The presentation (with maximum 20 slides) should include a preliminary economic
analysis (use the net present value, NPV and a sensitivity analysis based on the 5%, 7%
and 9% interest rates), as well as examine the possible shortcomings in the economic
analysis, and explore the potential impact of non-economical factors associated with the
proposed project.
The structure of the powerpoint slides should mimic the structure of a technical report, and
include title page, introduction (and/or background), discussions (and results), conclusions
(and recommendations) and references.
For the economical analysis, the following information has been provided to you:

You are provided with a table containing economic assumptions for both Soybeans varieties: These assumptions include:

sensitivity analysis rates, yield level (tonnes/hectare), production period, harvest price level, estimated investment, area of farm, ground preparation, weed control, cuttings, cut back, and fencing.

In your project include concepts of economic analysis such as:

• discounting factors
• NPV calculations
• capital budgeting