was obtained from the Company.
This study compares the profitability of blend (i.e. fruit juice made up of pineapple and mango blend) with that of pineapple juice alone. The viability
of the project was determined using the discounted measures of project worth: Benefit-Cost Ratio (BCR), Net Present Value (NPV) and
Internal Rate of Return (IRR). The empirical results reveal that pineapple juice processing had a BCR of 1.03 which means that going into
the pineapple juice processing is profitable. The value of the NPV (GHS11,728.00) and IRR (23%) further confirms that pineapple juice
processing is profitable because the NPV is positive and the IRR is greater than the discounted factor (21%). The results also showed that
it is more profitable to invest in the blend (pineapple and mango blend) than the pineapple juice alone as it yields a BCR of 1.36 which was
greater than the BCR of 1.03 for the pineapple juice only. Furthermore, the value of the NPV (GHS176,831.00) which is greater than the
pineapple juice only, suggests that the blend is more profitable even though the IRR for both are the same. Moreover, it is also more likely to
recover capital investment earlier in the processing of the blend than when one goes into pineapple juice processing only, because the net cash
flow in year 2 (GHS 58,146.00) for the blend is more than triple that of the pineapple juice only (GHS17,826.00).These results have policy
implications for the development of Agribusinesses in Ghana.
was obtained from the Company. This study compares the profitability of blend (i.e. fruit juice made up of pineapple and mango blend) with that of pineapple juice alone. The viabilityof the project was determined using the discounted measures of project worth: Benefit-Cost Ratio (BCR), Net Present Value (NPV) andInternal Rate of Return (IRR). The empirical results reveal that pineapple juice processing had a BCR of 1.03 which means that going intothe pineapple juice processing is profitable. The value of the NPV (GHS11,728.00) and IRR (23%) further confirms that pineapple juiceprocessing is profitable because the NPV is positive and the IRR is greater than the discounted factor (21%). The results also showed thatit is more profitable to invest in the blend (pineapple and mango blend) than the pineapple juice alone as it yields a BCR of 1.36 which wasgreater than the BCR of 1.03 for the pineapple juice only. Furthermore, the value of the NPV (GHS176,831.00) which is greater than thepineapple juice only, suggests that the blend is more profitable even though the IRR for both are the same. Moreover, it is also more likely torecover capital investment earlier in the processing of the blend than when one goes into pineapple juice processing only, because the net cashflow in year 2 (GHS 58,146.00) for the blend is more than triple that of the pineapple juice only (GHS17,826.00).These results have policyimplications for the development of Agribusinesses in Ghana.
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