ECONOMIC FEASIBILITY ANALYSIS OF A WOOD DRYING PROCEDURE FOR WOOD INDUSTRIES IN THE SOUTHWEST OF SÃO PAULO

Abstract

This research analysed the economic feasibility to six machining Pine Wood drying processes in the Itapeva region in the state of São Paulo. This region centralizes a large forest potential; however, the local companies lack advanced industrial technology because of the lack of information on the part of the wood companies businessmen. This study will minimize this problem by providing the most important information regarding the wood drying process for industrial purposes. As regarding to finance, this instrument took into consideration all the important variables of the drying process. It realized a data survey of the involved processes and an economic analysis based on the Economic Engineering mechanisms. Determining methods were used such as the Net Present Worth (NPW), the Future Value (FV), the Annual Equivalent Value (AEV), the Internal Rate of Return (IRR), the Return On Investment (ROI) and the Benefit-Cost Ratio (BCR). The annual gross profit, annual gross income, production costs and the taxes concerned to the activity were obtained with basis on actual commercial values. After the analysis, it was concluded that the best alternatives of investment are the processes based on national drying kilns, resulted as an alternative of the national conventional drying process, that presented a NPW of R$ 2.608.949,06, an AEV of R$ 519.838,48 and an IRR of 48,81047%, this last one much better than the 15% of the TMA usually adopted.