Table 6 Discounted cash flow assumptions

Plant life

30 years

Discount rate

10%

Financing

40% equity

Loan terms

10-year loan at 8% APR

General plant depreciation

200% declining balance^a

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%