Abstract

Was developed a computational method in Excel® spreadsheet to compare investments with application in the production of biodiesel. Biodiesel can replace all or part of the diesel oil in automotive diesel engines. Its use on a large scale will allow the economy to foreign exchange to import diesel oil, and expected reduction of environmental pollution. The methodology applied to assess the economic viability of a production process used the simultaneous employment of technical calculations of Net Present Value (NPV) and Internal Rate of Return (IRR). A value of IRR in the NPV calculation expression replacing the Minimum Rate of Attractiveness (MRA) and leads to an iterative calculation whose result cancels the NPV value. For a quick and efficient choice of investment more attractive the spreadsheet was developed using the Excel 2007® Solver function. This tool is available and easily accessible to investors. It is established that presented method for calculating those economic parameters requires minimal efforts from the users

Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call