Economic Feasibility Analyses 



Key statistics for the proposed enterprise are as follows: 



Capital investment $775,000 



Operating costs, annual $750,250 



Sales, annual $1,143,750 



Net profit, annual (before income tax) $393,500 



Return on sales 34 percent 



Return on investment 51 percent 



Employees 20 



3523 



1. LOG DECK 



2. DEBARKER 



3. HEAD SAW 



4. ED6ER 



5. TRIMMER 



6. RIP SAW 



7. SURFACER 



8. DRY TRIMMER 



DRY KILN 



DRY STORAGE 



RIP 



a PLANE 

 MILL 



I TON OF 

 ROUGH LOGS 

 (O.D. WEIGHT) 



0.34 

 LUMBER 



0.45 

 CHIPS a SHAVINGS 



0.21 

 BARK a SAWDUST 



TOTAL 1.00 TON 



Figure 28-14.— (Top) Layout of mill designed to produce 20,000 board feet of kiln-dry 

 yellow-poplar framing lumber daily. (Bottom) Material balance for manufacture of 

 yellow-poplar framing lumber, based on ovendry weight of logs (including bark), and 

 products. (Drawings after Stumbo 1981b.) 



