Economic viability assessment of Bambara nut milling-sieving machine
2022
Ikechukwu, Ijeoma Francisca | Nwankwojike, Bethrand Nduka | Abam, Ibiam Fidelis
A novel continuous process milling-sieving machine specially developed recently for processing Bambara nut to flour was assessed for economic viability in this study with multi-criteria cost-benefit analysis measures in order to advance its acceptance and commercialization. This involved determination and assessment of its payback period, accounting rate of return, net present value and benefit cost ratio using the prevailing economic indicators/market prices of materials in Abia State of Nigeria between January and December, 2020. The decision measures applied include that the payback period of this machine must be less than its expected useful life of ten years and its benefit cost ratio must be greater than one. In addition, the investment's rate of return must be greater than the upper limits of Nigerian banks' lending and fixed deposit interest rates in order to justify its possible funding from personal savings and bank credits. Results showed that this innovation is economically viable due to its payback period of 1.5years and benefit cost ratio of 1.69 are as desired. Also the 46.89% accounting rate of return of this machinery outweighed Nigerian banks maximum fixed deposits return of 17% and prime lending rate of 29%. Thus, adoption of this novel milling-sieving machine is recommended for Bambara flour production because of its positive economic potential.
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