Financial evaluation of in vitro olive trees production with real options
Projects for the establishment of biotechnology companies are difficult to evaluate because they are in scenarios of risk and uncertainty. The objective of this work was to assess the financial feasibility of a commercial in vitro culture laboratory for the propagation of olive trees (Olea europaea...
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| Formaat: | Online |
| Taal: | spa |
| Gepubliceerd in: |
Instituto de Ecología, A.C.
2022
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| Online toegang: | https://myb.ojs.inecol.mx/index.php/myb/article/view/2380 |
| _version_ | 1799769431909335040 |
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| author | Perea-Gómez, Lorena García-Salazar, José Alberto López-Reyna, María del Carmen Arellano-Ostoa, Gregorio |
| author_facet | Perea-Gómez, Lorena García-Salazar, José Alberto López-Reyna, María del Carmen Arellano-Ostoa, Gregorio |
| author_sort | Perea-Gómez, Lorena |
| collection | MYB |
| description | Projects for the establishment of biotechnology companies are difficult to evaluate because they are in scenarios of risk and uncertainty. The objective of this work was to assess the financial feasibility of a commercial in vitro culture laboratory for the propagation of olive trees (Olea europaea L.). The project was evaluated with the traditional method through the calculation of the net present value (NPV), internal rate of return (IRR), discount rate (CRR), and benefit-cost ratio (B/C), and with the real options approach using binomial trees. The latter method considered the price volatility of the product and the probability of success of each of the project’s five stages (establishment, multiplication, rooting, acclimatization, and nursery) of the project. The results obtained with the traditional method indicate that the project should be rejected because the NPV value was MXN -1 498 656, the IRR was 13%, the CRR was 25%, and the B/C was 0.83. The results of the evaluation with the real options method indicate that each of the five stages of the project could be carried out in the two scenarios analyzed, considering that the total NPV was positive in each stage and, in addition, the value of the next stage was more significant than the value of the previous one. With this method, it was possible to determine the actual value of the project and the opportune moment to abandon it; therefore, it is recommended that investors use it when making decisions on high-risk investments in biotechnology projects. |
| format | Online |
| id | oai:oai.myb.ojs.inecol.mx:article-2380 |
| institution | Madera y Bosques |
| language | spa |
| publishDate | 2022 |
| publisher | Instituto de Ecología, A.C. |
| record_format | ojs |
| spelling | oai:oai.myb.ojs.inecol.mx:article-23802023-03-07T01:58:06Z Financial evaluation of in vitro olive trees production with real options Evaluación financiera de la producción in vitro de árboles de olivo con opciones reales Perea-Gómez, Lorena García-Salazar, José Alberto López-Reyna, María del Carmen Arellano-Ostoa, Gregorio binomial trees biotechnology research development risk investment in vitro commercial laboratory economic viability árboles binomiales biotecnología investigación desarrollo inversión de riesgo laboratorio comercial in vitro viabilidad económica Projects for the establishment of biotechnology companies are difficult to evaluate because they are in scenarios of risk and uncertainty. The objective of this work was to assess the financial feasibility of a commercial in vitro culture laboratory for the propagation of olive trees (Olea europaea L.). The project was evaluated with the traditional method through the calculation of the net present value (NPV), internal rate of return (IRR), discount rate (CRR), and benefit-cost ratio (B/C), and with the real options approach using binomial trees. The latter method considered the price volatility of the product and the probability of success of each of the project’s five stages (establishment, multiplication, rooting, acclimatization, and nursery) of the project. The results obtained with the traditional method indicate that the project should be rejected because the NPV value was MXN -1 498 656, the IRR was 13%, the CRR was 25%, and the B/C was 0.83. The results of the evaluation with the real options method indicate that each of the five stages of the project could be carried out in the two scenarios analyzed, considering that the total NPV was positive in each stage and, in addition, the value of the next stage was more significant than the value of the previous one. With this method, it was possible to determine the actual value of the project and the opportune moment to abandon it; therefore, it is recommended that investors use it when making decisions on high-risk investments in biotechnology projects. Los proyectos para establecer empresas biotecnológicas son difíciles de evaluar porque se encuentran en escenarios de riesgo e incertidumbre. El objetivo de este trabajo fue evaluar la viabilidad financiera de un laboratorio comercial de cultivo in vitro para propagar árboles de olivo (Olea europaea L.). El proyecto se evaluó con el método de análisis financiero a través del cálculo de indicadores como el valor actual neto (VAN), la tasa interna de retorno (TIR), la tasa de actualización (TREMA) y la relación beneficio costo (B/C), y con el enfoque de opciones reales utilizando arboles binomiales. Este último método consideró la volatilidad de precio del producto y la probabilidad de éxito de cada una de las cinco etapas (establecimiento, multiplicación, enraizamiento, aclimatación y vivero) del proyecto. Los resultados obtenidos en el análisis financiero indicaron que el proyecto se rechazó pues el VAN fue de MXN -1 498 656, la TIR fue de 13%, la TREMA de 25% y la B/C de 0.83. Los resultados de la evaluación con el método de opciones reales indican que cada una de las cinco etapas del proyecto se podría llevar a cabo en los dos escenarios analizados, ya que el VAN total fue positivo en cada etapa y, además, el valor de la etapa siguiente fue mayor al valor de la anterior. Con este método se pudo determinar el valor real del proyecto y el momento oportuno de abandonarlo; por lo tanto, se recomienda a los inversionistas utilizarlo al momento de tomar decisiones en inversiones de alto riesgo de proyectos biotecnológicos. Instituto de Ecología, A.C. 2022-12-13 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Artículo evaluado por pares application/pdf text/xml https://myb.ojs.inecol.mx/index.php/myb/article/view/2380 10.21829/myb.2022.2832380 Madera y Bosques; Vol. 28 No. 3 (2022): Autumn 2022; e2832380 Madera y Bosques; Vol. 28 Núm. 3 (2022): Otoño 2022; e2832380 2448-7597 1405-0471 spa https://myb.ojs.inecol.mx/index.php/myb/article/view/2380/2413 https://myb.ojs.inecol.mx/index.php/myb/article/view/2380/2449 10.21829/myb.2019.252840 10.21829/myb.2020.261960 http://creativecommons.org/licenses/by-nc-sa/4.0 |
| spellingShingle | Perea-Gómez, Lorena García-Salazar, José Alberto López-Reyna, María del Carmen Arellano-Ostoa, Gregorio Financial evaluation of in vitro olive trees production with real options |
| title | Financial evaluation of in vitro olive trees production with real options |
| title_full | Financial evaluation of in vitro olive trees production with real options |
| title_fullStr | Financial evaluation of in vitro olive trees production with real options |
| title_full_unstemmed | Financial evaluation of in vitro olive trees production with real options |
| title_short | Financial evaluation of in vitro olive trees production with real options |
| title_sort | financial evaluation of in vitro olive trees production with real options |
| url | https://myb.ojs.inecol.mx/index.php/myb/article/view/2380 |
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