Economic Analysis of the Pivotal Wheat Project


The purpose of this article is to evaluate the Pivotal Irrigated Wheat
Project by Cost-Benefit Analysis method in order to find the internal rate of
return and the ratio of Present Value of net benefits to costs.To this end, we
have estimated the economic surplus created due to shift in wheat supply ,
as result ofimplementation ofthe Project and have calculated the above
criteria. We found that IRR and PV of Net Benefits to Cost ratio under two
alternative foreign exchange rate and appropriate supply elasticity range
economically justify the Project