Financial analysis of MAFTech bull beef investment opportunity : a research report presented in partial fulfilment of the requirements for the degree of Master of Business Studies at Massey University

Abstract

MAFTech has established an investment opportunity whereby a nonfarming investor can provide the capital required to farm bull beef. The farmer and the investor share the returns from the investment, with the investor having a first charge over the proceeds received from the sale of the beef up to the amount of the initial capital injection. This type of investment scheme differs from more conventional form of investment. However, in order to compare this scheme with the more common forms of investment it is necessary to evaluate it to enable an optimal investment decision to be made. Hence the market for the production of bull beef is appraised. The risk involved in this investment is outlined and a sensitivity analysis to changes in price and weight conducted. Using this risk and return information a comparison with other investments is then made.