Title: The Jensson computer model: An option for growth in the fishing industry

The Kingdom of Tonga, an archipelagic group in the southwest Pacific, is the home of more than 100,000 people who have been subsisting mainly on fish and crops which can be grown on the land. Many types of fisheries have emerged in the past few years and commercial fishing, particularly tuna long line fishing, is slowly becoming an important part of Tonga‟s economic development. A closer look at the operations of local fisheries companies in Tonga is presented in this paper using the Jensson Computer Model, designed by Professor Pall Jensson of the University of Iceland, for measuring profitability and assessment of risks. Concepts such as cash flows, NPV and the IRR will be discussed and how they are applied in measuring the profitability of a tuna long line fishing business in Tonga. Risk will be explored in an attempt to measure the sensitiveness of uncertain variables to the NPV and IRR using an impact and a scenario analysis. Finally the Monte Carlo simulation method is conducted using the @RISK software to address the uncertainties as random variables chosen from a probability distribution.