Investment Analysis of Integrated Milling-Sieving-Dewatering Machine for Grain Slurry Starch Production

Authors

  • Egwuagu M. Onyekachi Department of Mechanical and Production Engineering, Enugu State University of Science and Technology, Enugu, Nigeria
  • Nwankwojike B. Nduka Department of Mechanical Engineering, Michael Okpara University of Agriculture, Umudike, Nigeria
  • Onwuka S. Osinachi Department of Mechanical Engineering, Michael Okpara University of Agriculture, Umudike, Nigeria
  • Abam I. Fidelis Department of Mechanical Engineering, Michael Okpara University of Agriculture, Umudike, Nigeria
  • Emeh C. Princewil Department of Mechanical Engineering, Michael Okpara University of Agriculture, Umudike, Nigeria

DOI:

https://doi.org/10.3126/kuset.v15i3.63257

Keywords:

Economic viability, Milling-sieving-dewatering machine, Grain slurry starch, Production, Slurry food diets/beverages

Abstract

Economic viability of a continuous process milling-sieving-dewatering machine for grain slurry starch production was evaluated in this study using benefit-cost methodologies in order to encourage its wide acceptance/adoption. Benefit cost ratio, payback period, net present value and accounting rate of return constitute the economic parameters of the machine evaluated subject to prevailing economic indicators/market prices of materials in Abia State of Nigeria in 2020. Results revealed that the machine’s benefit-cost ratio, payback period, net present value and annual rate of return as 1.86 years, 1.75, $593,140.90 and 31.41% respectively. The investment’s benefit-cost ratio of 1.75 implies an inflow of $1.75 for every $1 spent The payback of 1.86 years is far less than 10 years useful life of the machine while its 31.41% accounting rate of return outweighed banks maximum fixed deposits return of 16% and prime lending rate of 29% in Nigeria. Thus, the machine is recommended for advancement of grain slurry food processing sector due to its positive capital recovery prospect.

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Published

2021-12-30

How to Cite

Onyekachi, E. M., Nduka, N. B., Osinachi, O. S., Fidelis, A. I., & Princewil, E. C. (2021). Investment Analysis of Integrated Milling-Sieving-Dewatering Machine for Grain Slurry Starch Production. Kathmandu University Journal of Science, Engineering and Technology, 15(3). https://doi.org/10.3126/kuset.v15i3.63257

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Section

Original Research Articles