Economic and financial feasibility analysis for the acquisition of a storage soybeans and corn facility

Abstract

This study aims to analyze the economic and financial viability of an investment project aiming at building a corn and soybeans storage facility. The study arises from the need of integrating the storage industry with the production of a mid-sized company and due to the constant search for alternatives to reduce their production costs. The objectives are essential for the company to remain competitive in the market facing the limited resources and the strong competition. Thus, for this paper, an exploratory study with a qualitative approach with questionnaires was developed. The process mapping, market research and scenario analysis complemented this study. The research findings indicate, generally, that producers consider the use of investment analysis techniques in the development of new projects important. Among the techniques used, the following were considered to be the most significant: Net Present Value (NPV), Internal Rate of Return (IRR), Payback (PB), and the Cost- -Benefit ratio (C / B) as a measure of risk.

Keywords

• Feasibility analysis
• Accounting statement
• Investment evaluation