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Production line of herbal medicinal supplements

construction of the medicinal plant cultivation, harvesting and processing complex will be built on a land with an area of about 10,000 square meters and will cost about 4.8 million Euros. 2 years have been considered for its construction and the investor’s operation period will be 25 years after the start of operation. Based on the data and assumptions presented in the report, the current value of the cash flow is positive, the internal rate of return is equal to 10.15%, the benefit-to-cost ratio is 1.06, and the investment return period will be the 11th year of operation, all of which indicate a suitable economic benefit.

Area (square meters) 10,000
Net infrastructure (m2) 6,480
How to assign land land purchase
Land value (Euro) 80,000
The cost of purchasing equipment and machinery (Euro) 1,307,600
Fixed investment cost excluding land purchase(euro) 4,802,072/54
Annual operating cost (Euro) 11,933,354/96
Annual income (Euro) 14,400,000
Net Present value (NPV) 10,315,675/57
Investment Return Rate (IRR) 10/15%
Pay Back Period (PBP) 13th year of investment/ 11th year of operation
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Estimated investment costs

less than 1 million

Country

Islamic Republic of Iran

Region

Isfahan

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