Project Economics as a Tool for Evaluation of Viability of Projects: A Case of Palm Oil Milling Plant

Abstract

In this research work, a case study of a proposed palm oil milling plant by an
entrepreneur is looked into. This is with a view to ensuring its Viability, and also delving
into the Risk, Uncertainty and Sensitivity Analysis of vital parameters. At the end of all
analyses, the entrepreneur is well guided to take a decision on whether or not to commit his
or her scarce resources. Basic engineering economy methods for project evaluation are
highlighted. With the added information from the sensitivity analysis the investor would be
better informed about critical factor and therefore could take appropriate actions.