From: The commercial performance of cellulosic ethanol supply-chains in Europe
Finance variable | Scenario | |||
---|---|---|---|---|
 | Reference-case | First-plant | First-plant capital subsidy | N th plant – no subsidy |
Beta | Â | 2.37a | 2.37a | 1.32b |
Risk-free ratec | Â | 4.39% | 4.39% | 4.39% |
Market-risk premiumd | Â | 5% | 5% | 5% |
Debt ratio = d/(e+d) | Â | 20%e | 20%e | 55%f |
Cost of debtg | Â | 6% | 6% | 6% |
Discount rate/cost of capitalh | 6% | 14% | 14% | 7% |
Investment life (years) | 15 | 15 | 15 | 15 |
Salvage value at end of project (% initial investment) | Â | 5% | 5% | 5% |
Investment grant (%) | Â | Â | 25% | Â |
Salvageable fraction of working capital at end of project (%) | Â | 5% | 5% | 5% |
Build profile year: -2 | Â | 20% | 20% | 20% |
Build profile year: -1 | Â | 50% | 50% | 50% |
Build profile year: -0 | 100% | 30% | 30% | 30% |
Tax rate on net income | Â | 30% | 30% | 30% |
Insurance – % fixed capital | 1% | 1% | 1% | 1% |
Maintenance – % fixed capital | 2% | 2% | 2% | 2% |
Working capital – % fixed capital | 4% | 4% | 4% | 4% |