Application of economic and financial feasibility analysis in a residential condominium inside Amazonas

Abstract

This work aims to highlight the relevance of the application of the economic and financial feasibility study in civil construction. And for contribution in the academic environment, as well as for the new civil construction companies, it is relevant to study and outline the planning until the execution of an economic and financial feasibility analysis, being that this study was carried out of a real enterprise, whose project was of a residential condominium in the interior of Amazonas, municipality of Iranduba. Starting from a feasibility study, using as a method, with regard to nature, an applied and quali-quantitative research was approached; as for the purposes, there was a bibliographic survey and interviews and data analysis and as for the means, it was classified as bibliographic, documentary and field. Data were collected from the construction company and developer in the development & new business sector. Some variables were addressed in the risk analysis, such as Cash Flow, Minimum Attractiveness Rate (TMA), simple and discounted Payback, Net Present Value (NPV), Internal Rate of Return (TIR) and Modified Internal Rate of Return (TIRM) . The results showed that the studied enterprise is economically viable, and offers great potential. The simulation was carried out with the sale of 20% of the project's units by the tenth month of execution and the remainder until the completion of the work in the 38th month. The commercialization hypothesis resulted in a NPV of R $ 702,043.50, an IRR of 1.91%, a discounted payback of 35.99 months and a profitability index of 1.10. Based on these data, it was possible to demonstrate as possible flaws in the execution of the project that there is a need to sell real estate in the plant, with the application of economic viability indicators in the project's cash flow in order to verify that the return on investment is better when the units are sold in a short period of time after the launch of the project. It was also understood the panorama in which this type of business is inserted and stands out as the biggest advantage, the initial investment. The scenarios proved to be profitable and consistent in terms of their financial health and an interesting alternative for the investor, since all the analysis methods applied showed a very positive result over the analyzed monthly periods, indicating a reasonably quick financial return.