Economic and Sensitivity Analysis in a Settlement Stablished in Southwestern Bahia

ABSTRACT The implementation of a forestry project should be guided by tools of economic analysis in order to endorse investments made. This work aimed to promote an economic and sensitivity analysis of eucalyptus reforestation projects in the microregionof Vitoria da Conquista - BA, using the Net Present Value, Internal Rate of Return, Journal Equivalent Value and Production Average Cost as well as to perform a sensitivity analysis, by varying the production annual interest rate and the price of wood. The implementation cost was $2,091.92 reais. Tconsideration of the execution process yielded a value of $915.29 reais, corrected for the year zero. Despite being long-term process, forestry activities are a good alternative to diversify production and income for small producers, presenting an economic viability for all criteria evaluated.