This project profile deals with the establishment of modern or high standard office andhousehold furniture producing plant in Amhara National Regional State. The following presentsthe main findings of the studyDemand projection divulges that the domestic demand for high standard office and householdfurniture is substantial and is increasing with time. Accordingly, the planned plant is set to produce various kinds of household and office furniture annually. The total investment cost of the project including working capital is estimated at Birr 1.47 million and creates 33 jobopportunity and Birr 342.6 thousand of incomeThe financial result indicates that the project will generate profit beginning from the first year of operation. Moreover, the project will break even at 27.5% of capacity utilization and it will payback fully the initial investment less working capital in 2 years. The result further show thatthe calculated IRR of the project is 33% with NPV at 18% discount is Birr 808,206.57In addition to this, the proposed project possesses wide range of economic and social benefitssuch as increasing the level of investment, tax revenue, and employment creation.Generally’ the project is technically feasible, financially and commercially viable as well associally and economically acceptable. Hence the project is worth implementing.
2.Product Description and Application
The proposed project is for setting up a high standard wooden furniture manufacturing unit. The project will cater to the needs of the domestic market. This project will be capable of integratedmanufacturing of wooden furniture starting from cutting of wood to retailing of product to thecustomer. Products to be included in this project are high quality chairs, bead, tables, frames etc.for office and household uses. They are to be made from processed wood.1