is profitable. Further, the value of the NPV (GHS11,
728.00) and IRR (23%) confirms that pineapple juice processing
is profitable as the NPV is positive and the IRR is greater
than the discounted rate of 21%.
The results also reveal that it is more profitable to invest
in processing pineapple and mango blend than the pineapple
juiceas this yields a BCR of 1.36 which was greater than the
BCR of 1.03 for processing pineapple juice only. The NPV
value of GHS 176, 831.00 is greater than that of the pineapple
juice only (GHS11,728.00). This finding 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 with the pineapple and mango blend processing
thanprocessing pineapple juice only, because the net
cash flow in year 2 (GHS58,146.00) for the blend is more than
triple that of the pineapple juice only (GHS17,826.00).
The study provides the following recommendations. First,
Agricultural products are highly seasonal and vulnerable to
spoilage. To avoid high cost of raw materials during off-season,
fruit juice processors should manufacture adequate volume
of processed products to avoid stock-out. This equalizes
the supply and demand of both raw and processed products.