Formulation and evaluation sheep meat production projects model

Abstract

The purpose of this work is to present an Excel application, developed by the authors, to assess the technical, economic, and financial feasibility of the investments required for a sheep meat production project. The model allows for the determination of operational, management, and structural expenses associated with production, and the business revenues come from the sale of meat and wool, both included in the project's cash flow that is evaluated. The model utilizes the Net Present Value (NPV) and the Internal Rate of Return (IRR) as tools to determine the project's viability and profitability. These indicators are dynamic and take into account the time value of money. Additionally, they allow for the analysis of the project's sensitivity to variations in expenses and revenues. The proposed model serves as support for the decision-making process, generating systematized and quality information from data sourced from real companies or simulations.