This profile envisages the establishment of a plant for the production of spades andshovels with a capacity of 1,200 tonnes per annum. The present demand for the proposed product is estimated at 774 tonnes per annum. The demand is expected to reach at 1,671 tonnes by the year 2017. The plant will create employment opportunities for 56 persons. The total investment requirement is estimated at Birr 5.39 million, out of which Birr1.84 million is required for plant and machinery. The project is financially viable with an internal rate of return (IRR) of 27 % and a netpresent value (NPV) of Birr 4.16 million, discounted at 8.5%.
II. PRODUCT DESCRIPTION AND APPLICATION
A spade is a tool designed primarily for the purpose of digging or removing earth. Ingardening, a spade is a hand tool used to dig or loosen ground, or break up clumps in thesoil. Spades are made in many shapes and sizes, for a variety of different functions and jobs. There are many different designs used in spade manufacturing. The most commonspade is a garden spade, which typically has a long handle, is wide, and is treaded (hasrest of the feet to drive the spade in to the ground).A shovel is a tool for lifting and moving loose material such as coal, gravel, snow, soil, orsand. It is usually a hand tool consisting of a broad blade with edges or sides that is fixedto a medium-length handle. The term “shovel” is also applied to larger excavatingmachines, such as steam shovels, which are designed for the same purpose-lifting andmoving materials.