A FEASIBILITY STUDY OF INVESTMENT ON MAIZE GRAIN DRYER PLANT

Abstract

This research studied general conditions of maize grain dryer plant, model and technical information of maize grain dryer plant investment project, analyzed financial feasibility and test the capability in accepting changes of maize grain dryer plant in Khoksamrong District, Lopburi Province. The study adopted primary data derived from participant observation and in-depth interview and secondary data derived from collecting related various academic documents. The obtained data were used in descriptive and quantitative analysis and employed financial instruments such as Weight Average Cost of Capital, Rate of Return, Profitability Index, Net Present Value, Internal Rate of Return, Modified Internal Rate of Return, and Switching Value Test.

The investment opportunity was foreseen by applying the technology of circulation maize grain hot wind dehydration in accordance with the model of dehydrator plant, the heat from chaff was used as fuel. For the results of financial study, it was found that at 10 years of project age, discount rate was 9.45 percent, the project yielded investment worthiness due to the NPV value of 13,710,415  ,PI of 1.41, IRR of 16.19 percent and MIRR of 12.94 percent. The Switching Value Test indicated that the maximal decrease of return was 29.16 percent and maximal increase of investment capital was 41.17 percent.