Profitability Analysis of Soybean Oil Processes
Soybean oil production is the basic process for soybean applications. Cash flow analysis is used to estimate the profitability of a manufacturing venture. Besides capital investments, operating costs, and revenues, the interest rate is the factor to estimate the net present value (NPV), break-even p...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2017-10-01
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| Series: | Bioengineering |
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| Online Access: | https://www.mdpi.com/2306-5354/4/4/83 |
| _version_ | 1797717000315731968 |
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| author | Ming-Hsun Cheng Kurt A. Rosentrater |
| author_facet | Ming-Hsun Cheng Kurt A. Rosentrater |
| author_sort | Ming-Hsun Cheng |
| collection | DOAJ |
| description | Soybean oil production is the basic process for soybean applications. Cash flow analysis is used to estimate the profitability of a manufacturing venture. Besides capital investments, operating costs, and revenues, the interest rate is the factor to estimate the net present value (NPV), break-even points, and payback time; which are benchmarks for profitability evaluation. The positive NPV and reasonable payback time represent a profitable process, and provide an acceptable projection for real operating. Additionally, the capacity of the process is another critical factor. The extruding-expelling process and hexane extraction are the two typical approaches used in industry. When the capacities of annual oil production are larger than 12 and 173 million kg respectively, these two processes are profitable. The solvent free approach, known as enzyme assisted aqueous extraction process (EAEP), is profitable when the capacity is larger than 17 million kg of annual oil production. |
| first_indexed | 2024-03-12T08:29:48Z |
| format | Article |
| id | doaj.art-6fe928da97c74d4daccc4c76971f7d1e |
| institution | Directory Open Access Journal |
| issn | 2306-5354 |
| language | English |
| last_indexed | 2024-03-12T08:29:48Z |
| publishDate | 2017-10-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Bioengineering |
| spelling | doaj.art-6fe928da97c74d4daccc4c76971f7d1e2023-09-02T17:50:15ZengMDPI AGBioengineering2306-53542017-10-01448310.3390/bioengineering4040083bioengineering4040083Profitability Analysis of Soybean Oil ProcessesMing-Hsun Cheng0Kurt A. Rosentrater1Department of Agricultural and Biosystems Engineering, Iowa State University, Ames, IA 50011, USADepartment of Agricultural and Biosystems Engineering, Iowa State University, Ames, IA 50011, USASoybean oil production is the basic process for soybean applications. Cash flow analysis is used to estimate the profitability of a manufacturing venture. Besides capital investments, operating costs, and revenues, the interest rate is the factor to estimate the net present value (NPV), break-even points, and payback time; which are benchmarks for profitability evaluation. The positive NPV and reasonable payback time represent a profitable process, and provide an acceptable projection for real operating. Additionally, the capacity of the process is another critical factor. The extruding-expelling process and hexane extraction are the two typical approaches used in industry. When the capacities of annual oil production are larger than 12 and 173 million kg respectively, these two processes are profitable. The solvent free approach, known as enzyme assisted aqueous extraction process (EAEP), is profitable when the capacity is larger than 17 million kg of annual oil production.https://www.mdpi.com/2306-5354/4/4/83soybean oilprofitabilitycash flow analysisinterest ratenet present valuepayback time |
| spellingShingle | Ming-Hsun Cheng Kurt A. Rosentrater Profitability Analysis of Soybean Oil Processes Bioengineering soybean oil profitability cash flow analysis interest rate net present value payback time |
| title | Profitability Analysis of Soybean Oil Processes |
| title_full | Profitability Analysis of Soybean Oil Processes |
| title_fullStr | Profitability Analysis of Soybean Oil Processes |
| title_full_unstemmed | Profitability Analysis of Soybean Oil Processes |
| title_short | Profitability Analysis of Soybean Oil Processes |
| title_sort | profitability analysis of soybean oil processes |
| topic | soybean oil profitability cash flow analysis interest rate net present value payback time |
| url | https://www.mdpi.com/2306-5354/4/4/83 |
| work_keys_str_mv | AT minghsuncheng profitabilityanalysisofsoybeanoilprocesses AT kurtarosentrater profitabilityanalysisofsoybeanoilprocesses |