Eel farming is considered a highly profitable venture in all the countries where there is a dependable supply of elvers. Besides irregularity in the availability of elvers, the susceptibility of eels to environmental changes affects pro-duction and consequently profitability. Shang (1973) estimated the rate of return on investments in an eel farm in Taiwan to be about 65 per cent. Based on experience in eel farming using heated water effluents in France, Lemercier and Serene (1981) estimated the internal rate of return to be 17.5 per cent and the pay-back period as between 9 and 10 years, using an actualization factor of 17.5 per cent.
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