IOSR Journal of Applied Chemistry (IOSR-JAC) e-ISSN: 2278-5736. Volume 4, Issue 2 (Mar. – Apr. 2013), PP 79-85 www.iosrjournals.org www.iosrjournals.org 79 | Page Cost Estimation of Cashew Extract Evaporator Using Scaling Factors and Cost Index 1 Abdulraheem, M.O., 2 Aberuagba, F., 3 Okafor, J.O. and 4 Otaru, A.J. 1 (99, Amac Health Clinic Road, Zone 6, Lugbe, FCT – Abuja) 2,3&4 (Department of Chemical Engineering, Federal University of Technology Minna, Nigeria). Abstract: Lot of accuracy is required in estimating capital investment costs. A tabular form is suggested for estimating total product cost and constitutes a valuable checklist to foreclosed omissions. Using annual profit of $1,182,340.46 ($3,593.74 x 329days). Assumed feed rate of 14,400ltrs; composition cashew source 62.05 per cent, water 37.95per cent. Estimated cost of equipment using scaling factors and cost index, from the equipment Vs capacity exponent, was given as 0.54 and gotten as $28,159.49 as at 1990 and calculated as $109,545.7 in 2013 assumed 9% inflation to date. The total fixed-capital investment using ranges of process-plant component costs give us $416,272.96. Where the double effects evaporators was proven to be better. Break-even point, gross earnings, and net profit for the process plant where given thus: The direct production cost/unit is $0.226’unit, number of units needed for a break-even point (n), is 13,369,609.7units/year. The plant operates at 74% of the present plant operating capacity. Gross annual earnings is $286,714.588, Net annual earnings is $566,227.22. Pay – back Time, Savings is 1,856,890 units/year with Rate of Return as 74.11per cent and as 1.35years. Keywords: Cashew, Cost, Evaporator, Extract and Nigeria. I. Introduction The cost estimation which involves capital investment, operation costs and sales of products can be grouped under the general heading of total product cost. The largest sources of error in total-product- cost estimation are overlooking elements of cost. Continuous processes are economical for a large scale production. Batch processes are used where some flexibility is wanted in production rate or product specification. Annual profit at 329days per year was adopted out of 365days in the year, considering holidays and weekends. Assume the feed rate be 14,400ltrs; with composition of cashew source 62.05 per cent and water 37.95per cent. To estimate the cost of equipment scaling factors and cost index will be used, from the equipment Vs capacity exponent, this is given as 0.54 at $28,159.49 in 1990. The total fixed-capital investment using ranges of process-plant component costs. The investment comparison for required the operation with limited number of choices. The effective effects of evaporators would be determined. Break-even point, gross earnings, and net profit for the process plant would also be calculated. The direct production cost per unit, number of units needed for a break-even point (n),units per year. The plant present operating capacity is put at 74%. Gross annual earnings, Net annual earnings, Pay – back Time, Savings and Rate of return on the investment. II. Research materials and methodolgy Cashew apple juice extraction Cashew fruits, red elongated type is plunged from the isolated tree, carry to the laboratory. The plunged cashew was carefully selected to remove the infected and damaged ones, average weight of a cashew is taken along with the cashew nut and without the nut. The following average weight of the cashew without the nuts was obtained = 82.88gu637666666mm66666.9666rtvb966 Figure 1. Red elongated Cashew Apple Fruit