Feasibility Study Presented To The Federal Republic Of Nigeria | Farm Energy - Agriculture - Nairaland
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| Feasibility Study Presented To The Federal Republic Of Nigeria | Farm Energy by nollycomedy: 4:49pm On May 08, 2018 |
FEASIBILITY STUDY PRESENTED TO THE FEDERAL REPUBLIC OF NIGERIA | Farm Energy FEASIBILITY STUDY PRESENTED TO THE FEDERAL REPUBLIC OF NIGERIA | Farm Energy - feasibility study of laundry shop, feasibility study of duck egg production, feasibility study of a restaurant, feasibility study of car wash business,feasibility study of water refilling station,feasibility study of the project,free sample of feasibility study of bakeshop, feasibility study of computer shop. Introduction The shift in peoples dietary intake of meat especially red meat to fish due to increasing awareness of its low cholesterol level and the unsaturated fatty acid composition coupled with the ever increasing population has led to the increase demand for fish. This demand inspite of the combined efforts from both industrial trawling vessels and the artisan fisheries, the demand cannot be met with the supply from these sources; this is as a result of depleting stock in the natural water bodies due to over fishing and the devastating effects of pollution in our water bodies. FEASIBILITY STUDY PRESENTED TO THE FEDERAL REPUBLIC OF NIGERIA | Farm Energy The available alternatives to argument this short fall in supply are aquaculture and import. The Later should be discouraged because for a country that is trying to improve on its foreign reserve like ours to make such an attempt is unwise and uneconomical. We are now left with the only option which is aquaculture. Feasibility takes into consideration the practicability of a project while viability dwells on, will the benefit of the project justify the cost? The benefit of the project as shown below in this proposal justifies the cost. The location is just out sketch of Minna town Korokpon to be précised with a distance of less than Five (5) Kilometers to the ADP fish hatchery where fingerlings could be source easily. It proximity to the high way is also a good advantage as travelers who are interested will stop over to make some purchases because a conspicuous sign post that will be placed by the roadside. There is high probability of increasing demand in the future. PROJECT LOCATION The fish farm is to be located on a village land, located along Minna Suleja Road, Korokpon Village after chanchaga Minna Niger State. Factors considered IN THE PROPOSED LOCATION (Feasibility and viability) The Chanchaga water works drainage is an added advantage for the healthy Aquaculture; this will also ensure all season farming. · Topography: The slope of the land is the type that permits easy drainage of water in and out of the pond especially from the Chanchaga Water works drainage aside the well that sank to ensure higher production and expansion of fish farm in the future. · Water: The physical-chemical and biological analysis of the well water and the Chanchaga drainage located near the site support fish culture · Accessibility: The location is easily accessible close to the main express way of Minna Suleja Road just after Chanchaga make transfer of raw materials easier proximity to hotels and university domiciled within the capital city of Minna is a good advantage for easy marketing. · Marketing: There is high demand for fish, especially mudfish by the inhabitants of the area, University Community, hotels, restaurants and fish barbecue centers across the Minna metropolis and beyond. Click here to read full page http://www.happyolderage.com/2018/05/feasibility-study-presented-to-federal.html OBJECTIVE OF THE PROJECT PROPOSAL · A technical guids to investment in fish farm project · This will serve as a technical guide in the proposed farm · The proposed fish farm is supposed to be stocked with 1,000 fingerlings two times in a year with available 3 concrete ponds measuring 5mx2mx1.5m. Cat fish, Clarias gariepenus which is in high demand in the location the fish is to be cultured. ASSUMPTIONS · Mortality is put at 2% with the proper nutrition and management practice. · The fish can be raised to table size two times in a year. Fish is supposed to gain an average weight of 1kg at the end of every six (6) months. · A kilogram of fish will sell at the rate of N400 or N500 CAPITAL INVESTMENT The total capital investment is about seven million (N7000,000) Infrastructures cost about N3,500000M while recurrent cost is about N2930,000 one million nine hundred and thirty thousand naira. AMOUNT OF LOAN REQUIRED Loan of about N5 Million at interest of 10% is require for the project while the remaining N2000,000 is the equity investment. LOAN REPAYMENT PLAN The even principal repayments with interest i.e the total loan sum divided by the number of years paid along with interest. Year Initial Balance Interest Rate 10% Principal Repayment Total Repayment 15,000,000 500,000 1,000,000 1,500,000 2 350,000 350,000 1,000,000 1,350,000 3 2,500,000 250,000 1,000,000 1,250,000 4 1,500,000 150,000 1,000,000 1,150,000 5 500,000 50,000 1,000,000 1,060,000 MANAGEMENT The farm staff strength is going to comprise of a farm manager who should be a graduate of fisheries with a minimum of 1 year farm experience. He/she is to be paid a salary of N360,000 per annum. The Manager is to be assisted by a farm attendant who must posses a Diploma and the farm Security both to be paid a salary of N180,000 per annum each depreciation of two deep freezer at 20% initial value N400,000 salvage value 0.2x400,000 D 400,000 – 80,000 = N80,000 5 = N64,000 Year Annual Depreciation Remaining Value 1 64,000 336,000 2 64,000 272,000 3 64,000 208,000 4 64,000 144,000 5 64,000 80,000 Depreciation on over head tank and pumping machine at 10% Initial Value = N160,000 Salvage = N160,000 = N16,000 Depreciation = 160,000 – 160,000 5 = 28,800 Year Annual Depreciation Remaining Value 1 28,800 131,200 2 28,800 120,400 3 28,800 73,600 4 28,800 44,800 5 28,800 16,000 Depreciation on Generator at 10% Initial Value = 100,000 Salvage = 0.1x100,000 = 10,000 Depreciation = 100,000 – 10,000 5 18,000 Year Annual Depreciation Remaining Value 1 18,000 82,000 2 18,000 64,000 3 18,000 46,000 4 18,000 28,000 5 18,000 10,000 Fixed Cost - 540,000 Land - 1,200,000 Pond - 900,000 Well - 300,000 Office/Farm - 400,000 Deep Freezer - 400,000 Generator - 100,000 Overhead tank and pump - 160,000 Recurrent cost - 2,700,000 Fingerlings - 240,000 per year - 1,200,000 for 5 years Feeds - 2,014,000 Fuel 10 lit/day - 261,000 PHC Bill - 60,000 Salaries - 540,000 Machinery - 100,000 Depreciation on land asset at 10% Initial Value 1,200,000 Salvage Value = 0.1x1,200,000 120,000 D = P – S N = 1,200,000 – 120,000 5 = 216,000 Year Annual Depreciation Remaining Value 1 216,000 984,000 2 216,000 764,000 3 216,000 552,000 4 216,000 336,000 5 216,000 120,000 Depreciation of pond at 10% Initial amount = 900,000 Salvage Value = 0.1x 900,000 D = P-S = 90,000 – 90,000 5 N = 162,000 Year Annual Depreciation Remaining Value 1 162,000 738,000 2 162,000 576,000 3 162,000 414,000 4 162,000 252,000 5 162,000 90,000 Depreciation of well at 5% Initial Amount = N450,000 Salvage Value = 0.05 x 450,000 = 22,500 D = 450,000 - 22,500 5 = N85,500 Year Annual Depreciation Remaining Value 1 85,500 364,500 2 85,500 279,000 3 85,500 193,500 4 85,500 108,000 5 85,500 22,500 DEPRECIATION OF OFFICE (FARM HOUSE) Initial Value = N300,000 Salvage Value = 0.1 x 300,000 D = 300,000 – 30,000 5 =54,000 Year Annual Depreciation Remaining Value 1 54,000 246,000 2 54,000 192,000 3 54,000 138,000 4 54,000 84,000 5 54,000 30,000 CASH FLOW ANALYSIS Year 1 2 3 4 5 Sales 4,352,000 3,352,000 3,352,000 3,352,000 3,352,000 Land 216,000 216,000 216,000 216,000 216,000 Pond 162,000 162,000 162,000 162,000 162,000 Well 85,500 85,500 85,500 85,500 85,500 Farm House 54,000 54,000 54,000 54,000 54,000 Over head Tank Pump 28,800 28,800 28,800 28,800 28,800 Generator 18,000 18,000 18,000 18,000 18,000 Deep freezer 64,000 64,000 64,000 64,000 64,000 Finger lings 240,000 240,000 240,000 240,000 240,000 Feeds 2,014,000 2,014,000 2,014,000 2,014,000 2,014,000 Fuel 261,000 261,000 261,000 261,000 261,000 PHC Bill 60,000 60,000 60,000 60,000 60,000 Salary 540,000 540,000 540,000 540,000 540,000 Miscel. 80,000 80,000 80,000 80,000 80,000 Gross profit 789,700 789,700 789,700 789,700 789,700 Net profit 750,215 750,215 750,215 750,215 750,215 EVALUATION OF THE PROJECT There are various methods that can be used but the most appropriate for this project are the pay back period, Net present value and the Benefit cost ratio methods. 1. Payback Period The project has an even cash flow of 4,352,000 each year for the 5 years period, on an investment amount of 5,000,000. Payback period = Initial fixed investment Annual cash flows = 3,716,000 2,352,000 = 1.57 Payback period is the period of time taken before the capital in a project; the working capital is fully recovered. In this study, the estimated payback period is approximately 1 ½ year. In view of the time of the project and amount involved the payback period is considered attractive and acceptable. 1. Net Present Value: Net present value is the classic economic method for evaluation and investment proposal like this. NPV= n{ At ----C t =0 (1+r)t Where r = interest C = present value of cash flow Or initial capital investment At = Cash inflow at time t t = time in year Net present Value = £ Discount factor 1 present Value –C (1+r)n Year cash flow discount factor present value 0 1 2,352,000 0.909 2,116,800 2 235,200 0.826 1,942,752 3 235200 0.751 1766352 4 235200 0.68 1599360 5 235200 0.62 1456240 8897731 NPV = 8,897,731-3,716,000 5,181,731 The Net present value is positive, so the project is acceptable. It means the rate of turn over exceed that minimum required rate of return Benefit cost Ration Cash inflow for 5 years = 4,352,000 x 5 = 21,760,000 (Benefit) Cost = fixed cost + variable cost = 26,112,000 B/c >I. So the project is acceptable. RECOMMENDATIONS The project based on the above evaluation method is economically viable and technically feasible. I hereby recommend strongly the implementation of this proposed project. REFERENCES 1 Haruna A.B (2003) Aquaculture in the Tropics Theory and practice, pp 248-251. 2 Tiamiyu L.O (2002) Fisheries Economics Lecture Note, University of Agriculture Makurde |
| Re: Feasibility Study Presented To The Federal Republic Of Nigeria | Farm Energy by Nostradamus: 8:56pm On Sep 02, 2019 |
nollycomedy:you do well |
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