Open Agriculture. 2017; 2: 401-410 300 and 250 days. The difference between operation times lies in the profitability, which decreases as the number of days reduces. Based on the result of this analysis, brewers' spent grain, groundnut cake, and sorghum flour can be utilized in industrial production of cookies with guaranteed profitability.Keywords: Economic evaluation; Brewers' spent grain; Groundnut cake; Sorghum flour; Return of investment; Internal rate of return
IntroductionCookie consumption in the world today had increased owing to convenience, sales price, and extendable shelf life (Agama-Acevedo et al. 2012). There had been increased consumption of processed food such as bakery and pastry products due to urbanization thereby leading to excessive increase in production cost as well as the demand for wheat importation -a major raw material used in producing these baked products (Dotsey 2009). The cost of importation of wheat flour used in producing different kinds of baked goods had been of major concern because it contributes to high foreign exchange, hence the need to explore the locally available raw material such as brewers' spent grain for the production of rich fibre gluten free cookies (Igbabul et al. 2014).Brewers' spent grain (BSG) is a by-product of the mashing process, one of the unit operations involved in brewing which brings about the solubility of malt and cereal grains to ensure maximum extraction of the wort (Fillaudeau et al. 2006). Following the separation of BSG from wort, the quantity of brewers' spent grain (BSG) generated could amount to 70-85% (Tang et al. 2009), which in turns accounts to 30-60% of the biochemical oxygen demand (BOD) generated in beer production process. The generated BSG can however be used in wet Abstract: Bakery and pastry products such as cookies are usually produced from wheat flour and as such contribute to high foreign exchange for tropical countries where such cereal is not cultivated. In view of this, we evaluated the engineering economics for the utilization of dried brewers' spent grain, groundnut cake and sorghum flour in the industrial production of cookies. The production was based on the assumption that the cash flow was uniform over the plant life (i.e. 10 years) with no salvage value. The equipment required for the production process was identified and estimates obtained from equipment manufactures. The production of the cookies was based on constant mass flow rate of 90 packets/min. The effects of uncertainties on cookie production were evaluated by varying the operation days (330, 300 and 250 days) and also by varying the price of some key variables required for the production processes. The results indicate that the capital cost (fixed and working capital) and the annual production cost (APC) were US$1.39×10 6 and US$10.08×10 6 /year, respectively. The after tax annual revenue was US$1.63×10 6 /yr. The return on investment (ROI), single payback period (SPBP), discounted payback period, gross margin and internal rate of return (IRR) of the pl...