ADDIS ABABA UNIVERSITY

COLLEGE OF BUSINESS & ECONOMICS

SCHOOL OF COMMERCE
DEPARTMENT OF ACCOUNTING & FINANCE

BUSINESS PROPOSAL
ON
COFFEE POWDER PRODUCTION

PREPARED BY

NAME ID.NUMBER
1. ALEMU BOLE BEE/6038/08
2. AHMED GASHU BEE/9120/08
3. DAMOT WALELIGN BEE/9006/08
4. ADUGNA ASRAT BEE/6027/08

SUBMITTED TO: INSTRUCTOR LEAKE SEYFE

JANUARY 2019
ADDIS ABABA

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Table of Contents pages

EXECUTIVE SUMMARY................................................................................................................................1
1. INTRODUCTION......................................................................................................................................2
2. PRODUCT DESCRIPTION AND APPLICATION...............................................................................3
3. PRODUCTION PROCESS.......................................................................................................................3
4. MARKET STUDY.....................................................................................................................................4
4.1. PRESENT DEMAND AND SUPPLY OF COFFEE POWDER....................................................4
4.2. DEMAND PROJECTION.................................................................................................................5
4.3. PRODUCT PRICING AND DISTRIBUTION................................................................................7
4.3.1. PRODUCT PRICING...............................................................................................................7
4.3.2. PRODUCT DISTRIBUTION...................................................................................................7
5. PLANT CAPACITY AND PRODUCTION PROGRAM.......................................................................7
5.1. PLAND CAPACITY..........................................................................................................................7
5.2. PRODUCTION PROGRAM............................................................................................................8
6. MATERIALS AND INPUTS.....................................................................................................................8
7. ENGINEERING.......................................................................................................................................10
7.1. MACHINERY AND EQUIPMENTS.............................................................................................10
7.2. LAND, BUILDING AND CONSTRUCTION WORK.................................................................11
8. MAN POWER REQUIRMENT..............................................................................................................12
8.1. MAN POWER..................................................................................................................................12
8.2. TRAINING REQUIREMENT........................................................................................................13
9. FINANCIAL ANALYSIS........................................................................................................................13
9.1. COST OF INITIAL INVESTMENT..............................................................................................13
9.2. ANNUAL OPERATION COST......................................................................................................14
10. FINANCIAL EVALUATION.............................................................................................................15
10.1. PROJECTED INCOME STATMET.........................................................................................15
10.2. CASH FLOW STATEMENTS...................................................................................................16
10.3. PAYBACK PERIOD...................................................................................................................17
10.4. NET PRESENT VALUE.............................................................................................................18
10.5. Internal rate of return (RRI)......................................................................................................19
11. SOURCE OF FINANCE.....................................................................................................................20
12. ECONOMIC BENEFITS..........................................................................................................................20

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 EXECUTIVE SUMMARY

Ethiopia is widely considered as the origin of Coffee and the fifth coffee
producer in the world. Even if Ethiopia is the leading producer of coffee, still
importing coffee powder from abroad to meet its local consumption needs. In
the meantime, due to the rapid growth of the economy, different service
providing sectors like cafes, restaurants, hotels and bars are growing from time
to time. Hence, the demand for coffee powder in these sectors is also increasing
in fastest way.

Considering, the existing unmeet and potential demands of coffee powder, the
purpose of this business proposal is to engage in coffee powder production so as
to meet the needs of the consumer and at the same time to earn profit.

The proposed project will be located at Addis Ababa city and the land will
acquired from the city administration through lease payment. The project has a
potential capacity of producing 105 tons of coffee powder per year. However, due
to various constraints, the project will start its operation by producing 75 tons of
coffee powder. The intended project will be operational at the beginning of 2020
and it requires an initial investment of 4,004,500 ETB. The project will have
enormous benefits including creating jobs for 23 employees.

The project is highly feasible and profitable. It will recover its initial investment
within 2 years and 10 months (PBP= 2.10 Years) and has a net present value
(NPV) of birr 887,937.13 discounted at 12 %

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1. INTRODUCTION

Ethiopia is the second most populous nation in Africa next to Nigeria, and the fastest growing
economy in the region. However, it is also one of the poorest, with a per capita income of $783.
Ethiopia aims to reach lower-middle-income status by 2025. To address the this deep-rooted
poverty ,the government of Ethiopia has designing and implementing GTP II that aims to
promoting foreign investments and local small scale manufacturing ‘sectors.

Despite the bad poverty image, Ethiopia is also widely known to be the birth place of coffee.
Many experts say that Ethiopia is the only place that coffee grew natively. At the same time,
Ethiopia is the largest coffee producer in Africa and the fifth largest producer in the world. An
annual coffee production in the country is 500,000-700,000 tones and accounts for 4.2% of the
global coffee production. Coffee accounts the lion’s share of Ethiopian export earnings. It plays
an important role in the economy and livelihoods of many citizens (CSA data 2003/4-2017/18).

Ethiopians are among the largest coffee consumers in Africa and the coffee consumption trend
in Ethiopia is growing at a steady pace. Almost 50% of the country’s coffee production is
consumed domestically.

Coffee does not only have an economic benefit to the country, but also has its own social values.
It creates a very strong relationship among people. During coffee ceremony people sharing ideas,
discuss on how they resolve conflicts, how they made & better their Business, and discuss other
important issues.
Now a day’s coffee powder is widely demanded by different restaurants, hotels as well as by
small scale traditional coffee drink sellers on the street and it indicates the existence of potential
investment opportunities in the coffee powder production sector. Accordingly, the proposed
project intended to meet the unsatisfied needs of the customer by producing coffee powder to
hotels, restaurants and other potential customers.

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2. PRODUCT DESCRIPTION AND APPLICATION

Coffee powder is a beverage derived from brewed coffee beans that enables people to quickly
prepare hot coffee by adding hot water to the powder and it is one of the most beloved beverages
worldwide. The coffee powder production passes various stages starting from green coffee
beans, roasting, grinding and packaging. One of the most important appeals of coffee has been
attributed to the fact that coffee has higher caffeine content than most naturally produced
beverages, such as tea and cocoa.

Studies show that coffee drinkers have a much lower risk of several serious diseases. Coffee can
help people feel less tired and increase energy levels .That’s because it contains a stimulant
called caffeine , the most commonly consumed psychoactive substance in the world.

3. PRODUCTION PROCESS

Generally Coffee processing involves three distinct phases that are roasting, grinding and
packing. Clean coffee, prior to roasting is blended in desired proportions.

Roasting

In the roasting step, green coffee is processed into scented a brown bean which is typically what
consumers think of coffee as. Roasting machines have a temperature of about 550 degrees
Fahrenheit. To keep the beans from burning, they are constantly moving in the machine
throughout the process. Once the beans reach an internal temperature of about 400 degrees
Fahrenheit, their color begins to turn brown and the caffeine begins to emerge in a process
known as Paralysis. The roasting process normally lasts for between 12 and 15 minutes. In slow
roasting techniques, it requires about 25 minutes. While roasting gives coffee its taste and aroma,
it also changes the bean in certain ways. After being roasted, the beans are cooled instantly by air
or water.

Grinding:
Coffee is ground in mills that use multiple steel cutting rolls to produce the most desirable
uniform particle size distribution. The grinding step provides the sole purpose of obtaining the

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most flavors for the cup of coffee. The ideal grade of grind is determined by the length of time
the grounds are in contact with water. When the grind is finer, the coffee should be prepared
more quickly.

Packaging:

Once the roasting and grinding phase is completed, the final stage of the coffee production
process is called Packaging. Packaging plays a very important and multiple roles including
attracting the potential customers.

Packaging coffee is the process of enclosing ground coffee to protect it from sunlight, moisture,
and oxygen, with the goal of preserving the coffee’s taste and aromatic characteristics, and also
to contain the coffee in controlled portions for ease of sale. The ground coffee is vacuum packed
in flexible paper bag and placed in a paperboard carton that helps shape the bag into a hard brick
form during the vacuum process. The carton also protects the package from physical damage
during handling and transportation.

4. MARKET STUDY

4.1. PRESENT DEMAND AND SUPPLY OF COFFEE POWDER

In order to highlight the potential demand of powder coffee, it is important to look different
statistics from different sources especially from Central Statics agency and ERCA. Even if
Ethiopia is known as one of the leading coffee producer, still Ethiopia is importing Coffee
powder from abroad to meet its needs. In short, the country`s demand of roasted, grounded and
packed coffee is not met only through local production but also by import. According to CSA the
local demand for coffee powder is estimated at 2,460, 2, 550 tons and 2,665 in 2015, 2016 and
2017. Based on this data the potential demand for coffee powered will be 4,099.1 tons by 2024
based on the time series data projection Method

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Table 1: Local coffee powder production(2015-2017)

S/N year Unit( tons) Production

1 2015 ton 2,460
2 2016 ton 2,550
3 2017 ton 2,665

Source: Central statistics agency ( CSA)

According to Ethiopian revenue and customs authorities, Ethiopia has imported coffee powder
from aboard to meet the unmet need of the country.

Table 2: Statstics of imported coffee powder ( 2015-2017)

S/N year Unit( tons) Production Remark

2 2015 ton 31
3 2016 ton 54
4 2017 ton 39

Source: Ethiopian Revenue and customs Authority

4.2. DEMAND PROJECTION

Ethiopia is fifth in the world in total production, according to statistics from the International
Coffee Organization, and many of its Arabica beans are recognized internationally for their high
quality. Hence, Coffee has very high demand both for export and local consumption.

Ethiopia is one of the leading consumers of coffee in Sub-Saharan Africa. Ethiopians are
substantial drinkers of coffee. Almost half of the country’s production of coffee is locally
consumed. In Ethiopia, coffee has both cultural and social standards. Even though Ethiopia is the
poorest of the world’s major coffee-consuming nations, with GDP per capita of just US$599 in
2015, Ethiopians still drink around 200 cups a year. No other country in that income group
drinks as much as that.

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The occurrence of small roadside stalls (containers) who sell coffee to passer by consumers is a
remarkable new development concerning coffee consumption in the main cities and towns of
Ethiopia. They serve coffee in a traditional way. However, most of these coffee sellers have a
problem of space to roast the coffee bean. The results of the market assessment indicated that,
roadside traditional coffee sellers are willing to purchase traditionally roasted coffees if it is
accessible to them in a fair price.

The local demand of coffee powder is projected using the following trend projection equations
obtained from data of 2015-2017.

Y= 2,173.1 +192.6 X-----------------Demand projection line

Table 3: Coffee powder demand Projection (2020-2024)

s/n Year Demand (tons) Production Unmet

demand
1 2020 3,328.6 2,665 663.6

2 2021 3,521.3 2,665 856.3

3 2022 3,713.9 2,665 1048.9

4 2023 3,906.5 2,665 1241.5

4 2024 4,0991 2,665 1,434.1

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 4.3. PRODUCT PRICING AND DISTRIBUTION

4.3.1. PRODUCT PRICING

The pricing method is simply cost plus pricing. Currently, the price of roasted, ground and
packed coffee in Ethiopia is Birr 105 per kg. There for proposed price for the project understudy
will be Birr 100 per kg.

4.3.2. PRODUCT DISTRIBUTION

The product will be delivered to the customer in different ways. The product will be available at
different supermarkets and retails so that the final customer can access it easily. Another
alternative Distribution mechanism of the product is door to door supply to major restaurants
cafes and road side coffee sellers to attract enduring customers.

5. PLANT CAPACITY AND PRODUCTION PROGRAM

5.1. PLAND CAPACITY

In line with the findings of the market analysis the proposed plant will have a capacity of 105
tons of roasted, ground and packed coffee per year. The plant will operate 6 days a week in a
normal working hour (8 hours a day). The key assumption is that to penetrate the market in the
introduction stage of the product long time of work is required .The proposed plant will start
production at 70 % of its capacity. The production is expected to growth at 7 % for the coming 5
years.

5.2. PRODUCTION PROGRAM

The proposed project production program is highlighted in the following table and the plant will
start its operation at 70 percent of its capacity

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Table 4: production schedules of the plant (2020-2024)

S/ Description unit Capacity Production per year Remark

N 202 202 202 202 202
0 1 2 3 4

Coffee tons 105 75 80 86 91 97

powder
production

6. MATERIALS AND INPUTS

RAW MATERIALS

The most important inputs required by the plant for production is green coffee. The annual
requirement for green coffee will be 75,80,86,91 and 97 tons from year 2020 to 2024
respectively. The first year cost of green coffee at a rate of 80,000 per ton will amount to Birr
6,000,000
The supplementary materials in the production of roasted, ground and packed coffee Comprise
packing materials .The packing materials to be used by the plant are different paper bags. The
proposed package sizes of printed paper bag for packing of roasted and ground coffee are 500
gm and 1000 gm. The required paper bag with preferred color and size will be acquired from
local paper factories. The estimated annual input requirement and its equivalent cost estimates
are given below

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 Table 5: Required Raw Materials and Inputs (2020-2024)
s/ Descripti unit 2020 2021 2022 2023 2024
n on Qty Unit Total Qty Unit Total Qty Unit Total Qty Unit Total Qty Unit Total
price cost price cost price cost price cost price cost
1 Green ton 75 80,00 6,000,0 80 80,00 6,400,00 86 85,00 7,310,0 91 85,00 7,735,00 97 90,00 8,730,
coffee 0 00 0 0 0 00 0 0 0 000
2 Paper PC 37,5 3 37,503 40,0 3 120,000 43,0 4 172,000 45,5 4 182,000 48,5 4 194,00
bag 500 00 00 00 00 00 0
GM
3 Paper Pc 37,5 5 37,505 40,0 5 200,000 43,0 6 258,000 45,5 6 273,000 48,5 6 291,00
Bag 1000 00 00 00 00 00 0
GM
4 Carton Pc 1,87 7 1,882 2,00 7 14,000 2,15 8 17,200 2,27 8 18,200 2,42 8 19,400
for 500 5 0 0 5 5
GM
5 Carton PC 2,50 8 2,508 2,66 8 21,328 2,86 9 25,794 3,03 9 27,297 3,23 9 29,097
1000 GM 0 6 6 3 3
Total Cost 6,079,3 6,755,32 7,782,9 8,235,49 9,263,
98 8 94 7 497

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ENERGY, WATER AND OTHER UTILITIES

Electric power and water are required for the proposed plant. The annual requirement for power
and utilities and the total estimated costs are presented as follows in each year.

Table 6: energy water and other utilities required for the production

S/N Description unit Qty Unit Year

Price 2020 2021 2022 2023 2024

1 Energy KW 11,000 0.755 8,300 8,300 8,300 8,300

8300
2 Water M3 200 13 2,600 2,600 2,600 2,600

2600
3 Postage/other LUP 5,000 5,000 5,000 5,000
Sum
5000
4 Fuel 10,000 10,000 10,000 10,000
10,000
Total 25,900 25,900 25,900 25,900 25,900

7. ENGINEERING

7.1. MACHINERY AND EQUIPMENTS

The necessary machinery and equipment required for the production of coffee powder is given in
the table below. On this basis, total cost of machinery and equipment is estimated at Birr
1,142,100 and all of the machineries are available locally.

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Table 7: List of production Machineries

s/n Description unit Qty Unit Total

rice Cost
1 Coffee roster Machine No 1 107,500 107,500
2 Coffee Mixer No 1 72,600 72,600

3 Coffee grinder Machine No 2 82,000 164,000

4 Floor packing machine No 1 143,00 143,000

5 Screw Conveyers No 1 78,000 78,000

6 Belt Conveyers No 1 77,000 77,000

7 Car no 1 500,000 500,000

Total Cost 1,142,100

7.2. LAND, BUILDING AND CONSTRUCTION WORK

The location of the proposed project will be in Addis Ababa. The main reason for location
selection is that the consumers of the product are mostly urban community and consequently it
will reduce distribution costs significantly.

The proposed project requires a total land area of 1,500 M 2 and this land will be acquired from
Addis Ababa land administration through lease payment agreement. The plant will lay at 500 M 3
and its construction will take 1,500 per M3 and it total construction cost will be birr 750,000. The
cost of land lease is expected to be 500 per M 2 and its total cost will be 750,000birr and it will be
paid for 50 years.

On the mean time, Addis Ababa City Administration has devised incentives on lease payment for
industrial projects including granting longer grace period and extending the lease payment period
to attract investments and reduce the city unemployment.

Accordingly, the proposed project will have a five years grace period, and 15 % of down
payment and the reaming payment will be completed by 45 years. Generally, the total land lease

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cost at a rate of Birr 500 per m2 is estimated at Birr 750,000 of which 15% or Birr 112,500 will
be paid at the beginning. The remaining Birr 637,500 will be paid within 45 years i.e. Birr
14,167 annually.

8. MAN POWER REQUIRMENT

8.1. MAN POWER

Total human resource requirement of the proposed project is 23 persons and its total annual cost
is estimated to be 684,000 birr. The human resource requirement and the estimated annual
labour cost are highlighted in the following tables.

Table 8: Human resource requirements for the proposed plant

S/N Position Number Monthly Years

of salary 2020 2021 2022 2023 2024
workers and
benefits
Administrative staffs
1 General Manager 1 8000. 96,000 96,000 96,000 96,000 96,000
2 Secretary 1 2,000 24,000 24,000 24,000 24,000 24,000
3 HR 1 3,000 36,000 36,000 36,000 36,000 36,000
4 Accountant 1 3,000 36,000 36,000 36,000 36,000 36,000
5 Cashier 1 3,000 36,000 36,000 36,000 36,000 36,000
6 Store keeper 1 3,000 36,000 36,000 36,000 36,000 36,000
7 Guard 3 2,000 24,000 24,000 24,000 24,000 24,000
8 sales 2 4,000 48,000 48,000 48,000 48,000 48,000
9 Cleaner 1 2,000 24,000 24,000 24,000 24,000 24,000
10 Driver 1 4,000 48,000 48,000 48,000 48,000 48,000
Operation personnel
11 Machine operator 2 6,000 72,000 72,000 72,000 72,000 72,000
12 Production worker 5 6,000 72,000 72,000 72,000 72,000 72,000
13 Quality controller 1 5,500 66,000 66,000 66,000 66,000 66,000
14 Tester 1 5,500 66,000 66,000 66,000 66,000 66,000
23 57,000 684,000 684,000 684,000 684,000 684,000

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 8.2. TRAINING REQUIREMENT
Arranging training is one of the key issues to improve the productivity of the labour force.
Therefore, key operation workers will take various on job trainings to improve their performance
and to make the products of the plant more competitive in terms of quality and other dimensions.
The total training cost of the project is estimated to be birr 10,000.00

9. FINANCIAL ANALYSIS

The following financial analysis of the proposed project is presented based on the
aforementioned information discussed in this project.

9.1. COST OF INITIAL INVESTMENT

The total investment cost of the project is estimated to be 4,004,500 birr and specifically each
cost category presented in the following table:

S/N COST ITEMS AMOUNT IN

BIRR

1 COST OF MACHINERY AND EQUIPMENTS 1,142,100

2 WORKING CAPITAL REQUIRMENT/INPUTS 1,250,000

3 MAN POWER 684,000

4 CONSTRUCTION 750,000

5 LEAS PAYMENT/ADVANCE 112,500

6 UTILITIE 25,900

7 TRAINING 10,000

8 ADMINSTRATIVE EQUIPMENTS/OFFICE 30,000

Total initial investment 4,004,500

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 9.2. ANNUAL OPERATION COST

/N COST ITEMS 2020 2021 2022 2023 2024

1 Raw materials 6,079,398 6,755,328 7,782,994 8,235,497 9,263,497

2 Man power 684,000 684,000 684,000 684,000 684,000

3 Utilities 25,900 25,900 25,900 25,900 25,900

Maintain ace
4 34,000 34,000 34,000 34,000 34,000
and repair
Depreciation %
5 5, 30 Years of 38,070 38,070 38,070 38,070 38,070
life

6 Insurance 12,000 12,000 12,000 12,000 12,000

6,873,368 7,549,298 8,576,964 9,029,467 10,057,467

Sub total

7 Contingency 3% 206,201 226,479 257,309 270,884 301,724

Total 7,079,569 7,775,777 8,834,273 9,300,351 10,359,191

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10. FINANCIAL EVALUATION

10.1. PROJECTED INCOME STATMET

Year 1 Year 2 year 3 Year 4 Year 5

Revenue 7,500,000 9,200,000 10,750,000 12,285,000 14,550,000
Cost of Production 6,346,398 7,022,328 8,049,994 8,502,497 9,530,497
Gross profit 1,153,602 2,177,672 2,700,006 3,782,503 5,019,503
Operating expense
administrative salary 408,000 408,000 408,000 408,000 408,000
utilities 25,900 25,900 25,900 25,900 25,900
Maintain ace 34,000 34,000 34,000 34,000 34,000
Depreciation expense 38,070 38,070 38,070 38,070 38,070
Insurance 12,000 12,000 12,000 12,000 12,000
Interest 240,250 182,590 160,679 128,543 96,407
other expense 15,000 20,000 25,000 27,000 29,000
Total operating expense 773,220 720,560 703,649 673,513 643,377
Earnings before tax 380,382 1,457,112 1,996,357 3,108,990 4,376,126
Tax 30% 114,115 437,134 598,907 932,697 1,312,838
Net Income 266,267 1,019,978 1,397,450 2,176,293 3,063,288
Dividend(10% of NI) 139,745 217,629 306,329
Beginning RE 0 266,267 1,286,246 2,543,951 4,502,614
Ending RE 266,267 1,286,246 2,543,951 4,502,614 7,259,574

The income statement of the proposed project will begin to generate profit in the first year. It
indicates a positive net Income after deducted all expenses and interest.

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 10.2. CASH FLOW STATEMENTS

Pre

operation Year 1 Year 2 Year 3 Year 4 Year 5

Cash inflow

Earnings before tax 380,382 1,457,112 1,996,357 3,108,990 4,376,126

Add: Deprecation 38,070 38,070 38,070 38,070 38,070

Long term loan 2,402,500

Equity/share 1,602,000

Total Cash Inflow 4,004,500 418,452 1,495,182 2,034,427 3,147,060 4,414,196

Cash Out flow

Tax Payment (30%) 114,115 437,134 598,907 932,697 1,312,838

Dividend(10% NI) 139745 217629 306329

Total Cash Out flow 114,115 437,134 738,652 1,150,326 1,619,167

Net Cash Flow 304,337 1,058,048 1,295,775 1,996,734 2,795,029

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 10.3. PAYBACK PERIOD

The proposed project is expected to recover its initial investment within a short period of time. It
is payback period is 2 years and 10 months.

Bay back period = 2 years + (2337778/2658160) * 12 = 2.10 Years

Net cash in Cumulative Initial

Year flow cash in flow investment
0 0 0 4004500

1 304337 304337 304337

2 1058048 1362385 1362385

3 1295775 2658160 2337778

4 1996734 4654894

5 2795029 7449923

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 10.4. NET PRESENT VALUE

S/N ITEMS YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

1,058,048.0

1 NET CASH FLOW 304,337.00 0 1,295,775.00 1,996,734.00 2,795,029.00

2 Discounted factor @ 12 % 0.89286 0.79719 0.71178 0.63552 0.56743

2 Present value 271,729.42 843,468.46 922,306.73 1,268,960.40 1,585,972.13

Total Present Value( sum of

3 all years PV) 4,892,437.13

4 Initial Investment 4,004,500

5 Net Present Value(3-4) 887,937.13

The net present value of the project is Birr 887,937.13 with a discount rate of 12%. This indicates that the proposed project is very
feasible

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 10.5. Internal rate of return (RRI)

Year Net cash flows Discount factor at 12% PV of net benefits

304,337 271,729
1 .0 0.89286 .5
1,058,04 843,469
2 8.0 0.79719 .4
1,295,77 922,307
3 5.0 0.71178 .1
1,996,73 1,268,960
4 4.0 0.63552 .6
2,795,02 1,585,974
5 9.0 0.56743 .5
4,892,441
Total Cash Net inflow .0
4,004,500
Investment .0
887,940.9
NPV 7

Year Net cash flows Discount factor at 19% PV of net benefits

304,337. 255,745.
1 00 0.84034 38
1,058,048. 747,156.
2 00 0.70616 27
1,295,775. 768,933.
3 00 0.59342 38
1,996,734. 995,708.
4 00 0.49867 85
2,795,029. 1,171,255.
5 00 0.41905 14
3,938,799.
Total Cash Net inflow 02
4,004,500.
Investment 00
(65,700.9
NPV 8)

IRR 12 + [887940.97/((887940.97-65700.98)*(.15-.12)

RRI 12+ 6.5 18.50%

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11. SOURCE OF FINANCE

The project will be financed through owner’s contribution (40% of the initial investment cost
and bank loan (70% of the initial investment)

S/N SOURCE BIRR Remark

1 OWNERS CONTRIBUTION 1,602,000

(40%)

2 DEBT (60%) 2,402,500

Total Initial investment 4,004,500

12. ECONOMIC BENEFITS

The proposed project primarily will create employment opportunity for at least 23 people. In
addition, it will contribute its own to the economic development of the country, especially to the
service providing sector by supplying quality coffee powder on a timely manner.

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