Techno-economic guide for the establishment of a groundnut paste production plant
1991
Blay, D., Food Research Institute, P 0. Box M20, Accra, Ghana | Allotey, L.D., Food Research Institute, P 0. Box M20, Accra, Ghana
The 8uide is designed to facilitate investment decision making by already operating andflC*ntial entrepreneurs interested in the establishment of a groundnut paste production plant. The pide is modclIed on the use of a rented factory building, market conditions prevailing in Aa:ca and a processing plant with capacity of 600 kg of groundnuts a day. Factors a1fecting the location of the plant are considered. These include the availability of raw materials, power, water, labour, facilities for waste disposal, transport etc. The fixed capital outlay is estimated at ¢6,t62,S30.oo with a working capital of ¢ 17,505,260.00, thus giving a total investment capital of ¢23,661,790.00. Return on investment averaging 70 per cent can be fC@isteredwithin 5 years of operatioIa. The venture shows an Internal Rate of Return (IRR) of 61 per cent after all financial obligation have been settle. The guide concludes that given the factor costs used and assumptions 1DIlde,the selected model shows high financial returns/viability and, therefore, it is recommended for adoption
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