Economic analysis (using NPV) of sugar production on the Kenyan Coast, or
your suggested alternative to sugar cane production on Kenyan coast
1. Use the internet and other sources to research and evaluate historical and present
economics associated with the sugar production on the Kenyan Coast. Attempt to define
how important the industry is presently (or will be) to the Kenyan economy.
2. Imagine that you are the chief engineer working for a large international firm in Kenya,
and that the government of Kenya has asked your best advice. What alternative forms of
agriculture/industry it might be appropriate for Kenya to invest into, and what is the likely
level of investment required? What employment would be provided and what would be
the likely ‘flow-on-benefits’ from your chosen alternative enterprise?
3. Set up an excel spreadsheet similar to the example provided to you on ENG2002
studydesk, named ‘NPVCalc’. You are welcome to use this provided spreadsheet, as a
‘starter’ to the one that you are going to develop and refine for your own purposes. Feel
free to ‘play around’ ie. experiment. Make adjustments and improvements to the
spreadsheet, to suit your own requirements and arguments which you want to present in
your report. The idea is to set up your spreadsheet to calculate, using the Net Present
Value (NPV) economic calculation method, the future profitability of the industry, based
on the assumed market profitability of your chosen path forward. You may choose to
recommend government financial assistance (ie. grants), with setting up your alternative
new industry.
4. Summarise the finding of your economic analysis in a report no longer than 2000 words,
or about ten pages in length including diagrams (including graphs).
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