Skip to main content

Table 4 Discounted cash flow analysis parameters

From: Techno-economic potential of bioethanol from bamboo in China

Parameters Value
Plant life 30 years
Discount rate 10%
Financing 40% equity
Loan terms 10-year loan at 8% APR
General plant depreciation 200% declining balancea
General plant recovery period 7 years
Steam plant depreciation 150% declining balance
Steam plant recovery period 20 years
Construction period 3 years
0–12 months 8% of project cost
12–24 months 60% of project cost
24–36 months 32% of project cost
Working capital 5% of fixed capital investment
Start-up time 3 months
Revenues during start-up 50%
Variable costs incurred during start-up 75%
Fixed costs incurred during start-up 100%
  1. aDepreciation method is the IRS Modified Accelerated Cost Recovery System (MACRS).