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Abstract
Risk management is one of very important problems concerning investment
analysis, because it is impossible to predict future events with certainty at the
moment when investment decision has been made. It is especially typical for
agricultural production which is significantly influenced by natural’s factors. Such
factors may cause various risks, thus it is necessary to pay special attention to
investment evaluation in risky circumstances. Probability estimation for some
future events depends on quality of available data, professional experience and
applied methodology.
Having that in mind, the goal of this paper is to comprehend possible risks in
vineyard production and ways to deal with the risks. Moreover, objective of the
paper is to analyze economic effectiveness of investments (using adequate
methodology) as well as to make choice between different vineyard planting
models in risky circumstances.
Data needed for formation of investment models originate from concrete
investment vineyard planting project as well as comprehensive professional
literature on vineyard planting projecting.