Discounted cash flow analysis of greenhouse-type solar kilns

This paper describes the overall discounted cash flow (DCF) analysis of two greenhouse-type solar kilns (Oxford and Boral) for hardwood drying processes. The financial performance of both the kilns was found to be mainly dominated by the costs/benefits associated with the model-predicted future thermal energy flows. All the costs and benefits were calculated based on the current energy prices, while adjusting all future cash flows (either costs or benefits) to their respective present values by incorporating appropriate inflation and discount rates. The overall results indicated that the net present cash benefit and the present drying energy benefit were larger for the Oxford kiln than those for the Boral kiln, by approximately 38% and 16%, respectively, while the present energy-loss cost was smaller for the Oxford kiln by 23% than that for the Boral kiln. A sensitivity analysis was carried out in order to assess the robustness of the results against the uncertain parameters. In general, the Oxford kiln design was found to be more cost-effective and environmentally beneficial than the Boral kiln design for hardwood drying. (C) 2016 Elsevier Ltd. All rights reserved.