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Vineyard or olive garden: an investment decision

Vineyard or olive garden: an investment decision

Riaz, Yasir and Abdullah, Iqra (2022) Vineyard or olive garden: an investment decision. Emerging Markets Case Studies, 12 (2). pp. 1-26. ISSN 2045-0621 (Online) (doi:https://doi.org/10.1108/EEMCS-09-2021-0293)

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Abstract

Learning outcomes
The learning outcomes are as follows:• demonstrate an understanding of the fruit farming process;• compare the pros and cons of farming different fruits;• understand the general characteristics of entrepreneurs and identify the issues they face;• compare the risk and returns from two types of investments;• apply capital budgeting techniques to ascertain the best available investment option; and• perform sensitivity analysis based on different anticipated situations for a new business.

Case overview/synopsis
Since his birth, Mr Bashir Khan, a 45-year-old father of four, lived as a farmer in Kallar Kahar, Pakistan. He owned 15 acres of land which he used to cultivate wheat and millet. He decided to start fruit farming after harvesting wheat in April 2021 to satisfy his long-standing desire to own a garden. He recently met a friend who was earning well from grape farming, who suggested that Khan set up a vineyard farm which could become a profitable venture for him. At the same time, Khan learned that the government had declared the Potohar region of Pakistan an olive valley, and was giving massive subsidies on olive cultivation. Khan now had a choice of fruits to plant on his land. One of his relatives, Omar Khayam, was an accountant at a firm. Khayam offered to conduct a feasibility analysis for Khan, to provide the relevant data, and help Khan select a high profit-yielding fruit farm.

Complexity academic level
Introductory finance courses at the undergraduate and postgraduate levels as well as executive training courses focused on the agri-finance discipline.

Item Type: Article
Uncontrolled Keywords: financial management, capital investment, small businesses, financial analysis
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
Faculty / School / Research Centre / Research Group: Greenwich Business School
Greenwich Business School > Centre for Research on Employment and Work (CREW)
Greenwich Business School > School of Management and Marketing
Last Modified: 29 Oct 2024 12:32
URI: http://gala.gre.ac.uk/id/eprint/48435

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