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FEASIBILITY STUDIES ON PRODUCTION OF PRINTING INKS 1. INKS VENTURE Inks venture is the art and science of producing coloured system for mans purpose of identification. The inks impact colour on any substance it’s applied which makes it economically relevant. Some of the substances which inks are printed on are (i)Polyethylene (ii)Polypropylene iii) Polyesters iv) Polyvinyl v) Foils vi) Coated paper etc. 1. 1 MARKETABILITY OF INKS It is evidence that the demand for inks is on the increase, this is due to the ever-increasing awareness of industries on products branding.

The recent industrial evolution in Nigeria and movement to stable economy is an evidence for more inks consumption. 1. 2 PRODUCTION TECHNOLOGY This involves production of colourants and vehicles that transfer it to the substrates. 3. PRODUCTION PROGRAMME The work of production is solely by the technician and factory worker for 8 hours duty or as situation might demand. 2. 0 CAPITAL EXPENDITURE S/nEquipment Qty needed Unit value=N=Total cost=N= 1. Mixer1400,000 400,0002. Extractor2 40,000 80,000 3. Chiller1 35,000 35,000 . Scale2145,000 290,000 5. Beads2 40,000 80,000 6. Sets of print proofer1 70,000 70,000 7. Viscosity cups2 75,000 150,000 8. F. O. F equipment1 65,000 65,000 9. Transportation1450,000 450,000 10. Computer & Printer2180,000 360,000 11. Chair & table2 20,000 40,000 12. Cabinets2 25,000 50,000 13. Office lease /Rentannual 72,000 72,000 14. Generator 7. 5kva 140,000 TOTAL 2,282,000 3. 0 PRODUCTION PROJECTION Considering a product of=N= 650 costs per kg with production cost of =N= 455, with proceed of =N=195 per kg.

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Daily minimum production.. 150kg Bi-Monthly minimum production.. 150*22*2 =6600 kg Expected Total revenue = minimum output * =N=195 = 6600 * =N=195 = =N= 1,287000 3. 1WORKING CAPITAL Based on the daily minimum production of 150kg and production cost of =N=455. The minimum working capital Daily cost of production =150*455 = 68,250 Bi-month cost of production = 68,250*22*2 =3, 003000 3. 2 OVERHEAD COST FOR THE TWO MONTHS Workers salary 510,000 Power83,333. 33 Maintenance38,000. 0 631,333. 33 Bi-month minimum working capital 3,644,333. 33 4. 0 PROFITABILITY Using discounting method, the capital expenditure, overhead cost and minimum working capital. The net present value worth of this project will be determine and whether the project is viable. i) A discounting factor at 25% ii) Pay back period (4years) iii) Total investment iv) Total overhead cost v) Expected total minimum income Bi-Month discount =95,083. 33 Total overhead cost=641,333. 33 Total expenditure =736,416. 6 Expected minimum income = 1,287,000 Net present value = min. income – total expenditure = 1,287,000 -736416. 66 = 550,583. 34 NPV: Cost ratio = 550583. 34/ 3,644,333. 33 = 0. 151 5. PROSPECTIVE CUSTOMER -Amin poly -Embassy poly -Polat -Salamasor -Bulkpack -Sky press. 6. CONCULSION From the analysis it show that a venture into inks production is profitable. This is because the NPV shows a positive value of 550,583. 34, while NPV: Cost ratio is a whole number of 0. 151.

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