Investment analysis for "Tomorri Ltd.", Berat, Albania

<p>"Tomorri Ltd." is an Albanian private company owned by Protopapa family that produces wheat flour for the Albanian domestic market. Its successful business operation not only enabled Tomori owners to recover their original investment over a relatively short payback period, but als...

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Bibliographic Details
Main Author: Gjata, Enkeleida
Other Authors: Agricultural and Applied Economics
Format: Dissertation
Published: Virginia Tech 2014
Subjects:
Online Access:http://hdl.handle.net/10919/41866
http://scholar.lib.vt.edu/theses/available/etd-03302010-020540/
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Summary:<p>"Tomorri Ltd." is an Albanian private company owned by Protopapa family that produces wheat flour for the Albanian domestic market. Its successful business operation not only enabled Tomori owners to recover their original investment over a relatively short payback period, but also provided them with an additional $100,000 available for new investment.</p> <p> The purpose of this paper was to identify the right investment decision for the Tomorri owners given three feasible alternatives. The primary method used to evaluate these alternatives was the Net Present Value approach. Net Present Value for each investment alternative was calculated based on a ten year stream of cash flows. A sensitivity analysis was then performed to test the responsiveness of the Net Present Values to fluctuations in the expected interest rates and salvage values associated with the three alternatives.</p> <p> The results of the Net Present Value analysis were used to provide the owners of "Tomorri Ltd." with the optimal alternative of investing in a new compact flour mill outside of Tirana.</p> === Master of Science