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Projected Annual Profits
Projected annual profits for an investment in a walnut orchard
All well-managed walnut orchards will eventually reach maturity and produce abundant profits for the owner. The journey to maturity, however, can vary. Some acres will mature earlier than others, a hailstorm can damage the production in any given year, some trees might succumb to disease. There are always variables that can’t be controlled.
This is why we’ve prepared 9 different scenarios, varying the price and yields in each scenario so that the investor can see the result that optimistic, pessimistic, or neutral yields have on the evolution of the orchard and its annual profits. We show the neutral scenario.
Projected Annual Profits
2.47 Acre Lot
USD
15.775
Annual Profits at Maturity
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Neutral Scenario
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Breakeven in Year 2025
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Maturity in Year 2025
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Projected Annual Profits In Neutral Scenario
Year by Year Projected Income & Expenses | |||||||||
---|---|---|---|---|---|---|---|---|---|
Año | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028+ | 2100 |
Gross Sales | 4.764 | 9.131 | 15.086 | 18.262 | 19.850 | 19.850 | 19.850 | 19.850 | 19.850 |
5% Management Fee | (184) | (486) | (896) | (1.116) | (1.225) | (1.225) | (1.225) | (1.225) | (1.225) |
Annual Orchard Expenses | (2.889) | (2.889) | (2.889) | (2.889) | (2.889) | (2.889) | (2.889) | (2.889) | (2.889) |
Net Cash Flows From Operations | 1.691 | 5.757 | 11.301 | 14.257 | 15.736 | 15.736 | 15.736 | 15.736 | 15.736 |