Economic Evaluation of Establishing Edible Mushroom Production Business in Kahrizak Sanatorium of Alborz Province

Development and prosperity of agricultural businesses is an entrepreneurial activity in facilitating the relationship between the agricultural sector and other economic sectors in line with the goals of economic growth and development of the country is considered a necessity. The objectives of this study were to economic assessment of edible mushrooms production using profitability indicators such as net present value (NPV), benefit-cost ratio (BCR), Return on Sale and Return on Investment in percentage and internal rate of return (IRR). The data of this study were related to the establishment of an edible mushroom production business in Kahrizak sanatorium for the Disabled in Alborz province by donors, which was collected in 2019 by documentary methods. The results showed that the capital and current costs of creating a 5-ton hall in the first year were estimated at 347.8 and 213.7, respectively, and a total of 561.5 Iranian million rials.  During the ten-year analysis period, the average percent of sale return and the average percent of cost return were estimated 22.1 and 28.5 percent,  respectively. The net present value of activity was estimated at 60.7 Iranian million rials with discount rate of 18% and benefit- cost ratio was estimated at 1.04. The internal rate of return of edible mushroom production was calculated to be 23.3%, that it is more than discount rate, thus, to create the edible mushroom production activity was economic in the Alborz province.