SR article

Profit & Return on Investment

If the revenues are taken and the everyday costs are subtracted, you end up with the actual profit per day. The revenue per day was 21775 Rupees and the everyday costs were 4895 Rupees. The actual profit that will be made is 16880 Rupees per day, which is a big profit for such a small business. However, if you want to earn back the initial investment this money needs to be used to pay of the investment, which was 603600 Rupees. With this profit the initial investment is earned back within 36 days, which in our eyes is more than acceptable.

If we look at a year, the total profit is 3356000 Rupees. This sounds really good, however this is under the assumption that we distillate 6 batches of 10 kg per day and sell all the produced oil. The Matlab file we attached in the collection can do all these calculations as above. In this file, things such as the number of batches per day, percentage that is sold, price for the bottles and all other variables can be altered and the file will calculate all the things as profit and return on investment.

For example, we assumed that we can distillate 6 batches per day. There is a possibility that this is too optimistic and the actual prototype distillates less batches per day. This will alter the return on investment and the profit directly. So as an example we used the Matlab file to calculate this influence. These results can be seen in the figures below.

 

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