ECONOMIC ANALYSIS

An economic assessment was done to see whether the project was financially viable. A ratio
between the first cost and the net annual profit is calculated using the rate of return approach. The
annual revenue was subtracted from annual expenses including depreciation, operation and
maintenance costs, and taxes and insurance costs to arrive at the net profit.

Cost Of the Bunch Separator project:

PARAMETER QUANTITY UNIT PRICE AMOUNT

1 HP Electric 1 pc Php 4,110.00 Php 4,110.00

Motor/Induction Motor
Cast Iron for V-Belt  1 pc double x 6 in Php 492.00 Php 492.00
Pulley diameter,1 in hole
diameter
 1 pc double x 2 in Php 164.00 Php 164.00
diameter,1 in hole
diameter
 1 pc double x 8 in Php 680.00 Php 680.00
diameter,1 and 1/2 in
hole diameter
V-Belts  1 pc 4PK830 V-ribbed Php 415.00 Php 415.00
belt
 1 pc 4pk615 V-ribbed Php 586.00 Php 586.00
belt
Stainless Steel Shaft 1 pc 1 in diameter x 500 mm Php. 271.00 Php. 271.00

Pillow Block Bearing 1 inch inside diameter x 2 pcs Php 188.00/pc Php 376.00
Unit UCP 205
Hexagonal Bolt  10 pcs M16, 80mm Php 16.00/pc Php 160.00
 24 pcs 5/16-24, 35 mm Php 12.00/pc Php 288.00
Compression Spring 8 pcs Compression Spring Php 55.00/pc Php 440.00
SUS304 stainless steel SUS304 stainless steel x 2mm
wire diameter x 40 mm length
Suspension Damper 4 pcs x 125mm length Php 276.00/pc Php 1,104.00
Shock Absorber
Roller Bearing Roller 4 pcs x 2 Inches Wide by 1 Php 199.5/pc Php 798.00
Ball Transfer Bearings Inches Tall
Mild Steel Blade Sickle head stainless steel x 4 Php 625.00/pc Php 2500.00
pcs
Mild Steel Tubular 2 in x 2 in x 12 meters Php 2,563.25 Php 2, 563.25

Mild Steel Angle Bar 1 in x 1 in x 177.12 in Php 225.00 Php 225.00

Mild Steel Flat Bar 2 in x 1/8 in x 197 in Php 285.00 Php 285.00
 Plain Sheet 4 pcs x 4 ft x 8 ft Php 816.00/pc Php 3,264.00

Php 18,721.25

Cost Of the Shredder:

PARAMETER QUANTITY UNIT PRICE AMOUNT

1 HP Electric 1 pc Php 4,110.00 Php 4,110.00
Motor/Induction Motor
Bearing 4pcs x 83 x 25 x 12 Php 650.00/each Php 2,600.00
37T gear (genuine: 2pcs x 37 teeth Php 455.00/each Php 910.00
2341-k56-n00)
Steel Shaft 4pcs x 12in x 1in Php 565.37/each Php 2,255.48
Shredder blade 20 pcs Php 441.00/each Php 8,820.00
shredder claw knife,
dual shaft shredder
knife
Cast Iron for V-Belt  1 pc x 2 in Php 164.00 Php 164.00
Pulley diameter, 1 in
hole diameter
 2 pcs x 10 in Php 920.00 Php 1,840.00
diameter, 1 in
hole diameter
V-Belts  1 pc 4PK830 Php 415.00 Php 415.00
V-ribbed belt
 1 pc 4pk615 Php 586.00 Php 586.00
V-ribbed belt
Sheet Metal 1pc 4" X 8" X 1/8 Inch Php 985.19 Php 985.19
High Tensile Ht Us 32pcs x 4mm x 25mm Php 13.00/each Php 416.00
Hexagonal Bolt
Php 23,101.67

The total investment cost, or first cost to put up the project, was approximately Php 71,822.92.
Since we can sell the machine at Php 93,369.80, which is 30% more than its total investment
cost, the projected profit per machine is Php 21,546.88.