System 6 alternatives: an economic analysis

Bruce G. Hansen; Hugh W. Reynolds; Hugh W. Reynolds

doi:10.2737/NE-RP-551

Treesearch

System 6 alternatives: an economic analysis

Informally Refereed

Authors:

Bruce G. Hansen, Hugh W. Reynolds, Hugh W. Reynolds

Year:

1984

Type:

Research Paper

Station:

Northern Research Station

DOI:

https://doi.org/10.2737/NE-RP-551

Source:

Res. Pap. NE-551. Broomall, PA: U.S. Department of Agriculture, Forest Service, Northeastern Forest Experiment Station. 14 p.

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Abstract

Three System 6 mill-size alternatives were designed and evaluated to determine their overall economic potential for producing standard-size hardwood blanks. Internal rates of return ranged from about 15 to 35 percent after taxes. Cost per square foot of blanks ranged from about $0.88 to $1.19, depending on mill size and the amount of new investment required.

Keywords

Low-grade hardwood utilization, blanks, dimension stock, investment analysis, discounted cash flow, internal rate of return

Citation

Hansen, Bruce G.; Reynolds, Hugh W. 1984. System 6 alternatives: an economic analysis. Res. Pap. NE-551. Broomall, PA: U.S. Department of Agriculture, Forest Service, Northeastern Forest Experiment Station. 14 p.