Investment efficiency of the machinery fishing boats in north Sinai Governorate

الملخص EN

The study aims to measure the feasibility of investment in the hand machinery boats in North Sinai Governorate, according to its investment capacity, measuring impact of the possible changes in the key economic variables, which were represented in (increasing operating costs, low return, and a combination of both) on the efficiency of investment.

In addition to identifying the critical levels for the most important variables affecting the efficiency of investment, and estimating the added value of those units.

The study showed several results and the most important results are: (1) the feasibility of investment in two categories of machinery fishing boats in north Sinai, which achieved a positive rate for standard of the net present value ranged between 1114 - 1917 thousand pounds in an average attained about 1515.5 thousand pounds.

As for the standard of benefit /cost ratio, its average attained about 1.45 year.

The average of internal rate of return attained about 48%, which is higher than the opportunity cost of available capital to invest in the community.

And for the standard of pay back period of invested capital, its average attained about 2.13 years.

(2) in the case of raising the annual operating costs by 10% shows that the values of standards used are good command which emphasizes safety, the investment feasibility in this activity in light of this change.

(3) in the case of reducing the return rate by 10% shows that the two categories of fishing boats still achieve high efficiency of investment and the second investment capacity was the least affected.

(4) in the case of reducing the return rate by 10% and increasing the operating costs by 10% as well (ie occurrence together) show that boats of the first investment category (less than 500 thousand pounds) are the most sensitive to occurring this change where they have reached the break-even point, while the second investment category achieved (more than 500 thousand pounds) IRR attained about 19%, as pay back period of invested capital increased for the two categories, although the two categories are affected by this change, average of the evaluation standards are good command confirms the feasibility of investing in this activity.

(5) the hand machinery boats achieved in the North Sinai Governorate added value amounted to about 1.3 million pounds for the seasonal average of fishing season 2011/2012 boats of the second investing category contributed in about 88.76%, while boats of the first investing category contributed in about 11.24%.