Financial Feasibility of Producing Floating Paper from Rapeseed Straw in Mazandaran Province

The aim of this study was to investigate financial feasibility of producing floating paper from rapeseed straw in Mazandaran province. Studies showed increasing attention of farmers to plant rapeseed straw in Mazandaran province. On the other hand, need for paper products are being increased following the growth of cultural, social and economic development plans. Rapeseed straw is one of the best raw materials for construction of new pulp and paper floating factories. Annual production capacity of rapeseed pulp fluting is 2,000 tons for per year. The Industrial accounting principles were used for economic evaluation of project. The total amount of investment was forecasted 36468.4 million Rial. The results of the economic evaluation indices, such as the internal rate of return (17%), payback period (40 months), break-even production (53.2 percent), sales break-even (16494.3 million Rial), capital in the circulation of fixed capital (11.3 percent), capital investment per capita (1091.88 million Rial/ person) and investment income (28.9 percent) and the cost of the product (10,610,350 Rial) indicated that the stablishment of this factory decreases the import of fluting paper, prevents currency waste, and it is financially justified.