Dry Kiln Feasibility Study

A detailed example of a feasibility study is made by calculating the return on investment for the dry kiln by using the discount cash flow method. Such analysis can be very accurate, but may be very expensive. The amount of time and money put into investment analysis should be wisely related to the size of the investment. When comparing several investment possibilities, there are always important factors to consider upon which an accurate dollars figure cannot be placed. The calculated rate of return on investments should not be the sole basis for the investment decision. Kiln operating expenses are calculated as follows (per MBF): Labor $ 4.27; Steam cost 1.54; Electric power 0.80; Maintenance 1.03; Supplies 0.46; Land & Buildings 0.40; Insurance 0.19; Sticker breakage 0.40; Assignable overhead 1.50; Total operating costs $10.59.

You must be logged in to download any documents. Please login (login accounts are free) or learn how to Become a Member