Manufacturing solid wood products from used utility poles: an economic feasibility study.
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The economic feasibility and profitability of two scenarios for manufacturing sawn and roundwood products derived from used preservative-treated utility poles were evaluated. The first, the base-case scenario, considered manufacturing sawn and roundwood products without retreating the final products with chemical preservatives. The second considered retreating the final products with chemical preservatives. The results of the study indicate that the base-case scenario is economically feasible, net present value (NPV) is $130,000, internal rate of return (IRR) is 42.6 percent and estimated annual operating income before income taxes is $35,100 with a return on sales (ROS) of 6.7 percent and return on investment (ROI) of 15.8 percent. The analysis considering chemical preservative retreatment of the recycled wood products indicates that preservative retreatment is not economically feasible. The analysis of chemical preservative retreatment indicates an estimated annual pre-tax operating loss of $297,200 and a negative NPV of $2. million.