Bruce G. Hansen

S2Three system 6 mill-size alternatives were designed and evaluated to determine their overall economic potential for producing standard-size hardwood blanks. The study focused on developing standard discounted cash flow measures. Internal rates of return ranged from about 15 to 35 percent after taxes. Secondary effort was directed at providing accounting cost summaries to facilitate cost comparison of standard-size blanks with rough-dimension stock. 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.S3.

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