For beehives, your projected income over the 10-year term is around R9 000. This gives you an average nominal return of 21% p.a. When the original purchase price taken into account, you arrive at the IRR of around 14% p.a. (which also takes into account the time value of money, bearing in mind that returns increase every year, in line with inflation and maturity of the hive). Your returns are projected to be 4.5% in year one, increasing to 28% in year 10, for the average nominal returns of 21% p.a.
Your beehives will only start earning income when they are swarmed. We will let you know when this is. It can take around 8 weeks to swarm a hive.
If this is to be viewed as an investment vehicle as opposed to a source of passive income, then investors should also look at the revenue generated from reinvesting their income, as this would further boost their returns. If you reinvested your harvest income at each harvest period in a typical risk-free interest-bearing account paying 7% p.a., your IRR would increase to 19% - your compounded effective interest rate.
You can also apply for a tax benefit to boost your returns even further. Fedgroup will help you to apply for this benefit.