ASSUMPTIONS
Various assumptions used as basis for performing economic analyses below are as follows.
- Investors have adequate capital for various phases of investment as presented in Tables below. The capital is a net investment value exclusive of interest rate payments;
- Investment capital includes costs for the conduct of detailed civil works studies, construction of public buildings, office equipment, ecological systems rehabilitation project, urban agriculture development project, compensatory payments for families affected by the investment project, and land rental;
- The goal of the investment is to make profits from the sales of land and buildings within the city development area;
- Capital invested in the ecological systems rehabilitation project will also cover the cost for care and management for the period of 10 years. This invested capital will not generate any profits;
- Capital invested in urban agriculture development may generate profits in the medium-and long-term. Yet, these profits were not factored in the analysis due to lack of reliable data on types of farm models, yields, and prices;
- This analysis covers the period of 15 years (2009-2023). It is assumed that there will be no income from year 1 to 3.
- All incomes deriving from the investment shall be deducted by 10% for value added tax payment (VAT). VAT is not applicable for incomes coming from the sales of agricultural products produced by the urban agriculture project or forest-based products; and
- Currency used in this economic analysis is US Dollars.