ECONOMIC AND FINANCIAL FEASIBILITY STUDY APPLIED TO AN INVESTMENT PROJECT

Abstract

This study aims to analyze the economic and financial feasibility of implementing an artisanal cachaça production unit in Limoeiro, Pernambuco. The research was based on secondary sources, including data from agencies such as the Brazilian Cachaça Institute (IBRAC), the Ministry of Agriculture (MAPA), and the Brazilian Institute of Geography and Statistics (IBGE), which provide a robust context on the production chain and the dynamics of the cachaça market. The technical analysis addressed the location of the production unit and the manufacturing process, demonstrating that the proposed infrastructure is in line with the best practices in the sector. The results show that the choice of location and production methodologies are favorable to operational efficiency, maximizing the use of available resources. The study also considered the market for artisanal cachaça, highlighting the growth in demand for differentiated products, driven by the appreciation of local culture. This scenario strategically positions the project in a growing market, increasing its attractiveness and potential for success. Finally, the economic-financial viability was confirmed through the analysis of discounted cash flows, which indicated a return on investment in approximately two years and five months. The positive Net Present Value (NPV) and the Internal Rate of Return (IRR) higher than the minimum attractiveness rate considered reinforce the financial attractiveness of the project. Therefore, it is concluded that the production of artisanal cachaça in Limoeiro-PE is not only viable, but also a promising opportunity to generate sustainable financial returns.