Economic viability of Khaya ivorensis production in small property in Paraná State, Brazil

Abstract

The African mahogany (Khaya ivorensis) is a tree species, used to obtain high quality wood. It presents high market value and good adaptation to most soil and climatic conditions of Brazilian territory. The purpose of this study was to analyse the economic viability of African mahogany plantation to obtain wood of high quality. Cash flow has been drawn up for a period of 20 years. The economic viability indicators calculated were: net present value (NPV); Internal rate of return (IRR); payback; index of profitability and sensitivity analysis taking into account the variation of 60% for more and for less in investment values and interest revenue. The NPV was R$ 11,296.72; the IRR 16%; the payback 19.92 years and the profitability index was R$ 2.82 for each R$ 1.00 invested. On sensitivity analysis, it was observed that only when increasing above 15% in interest, or fall greater than 25% in value of the the NPV would turn negative wood. Therefore, African mahogany plantationit, is feasible and presents low sensitivity changes in the market.