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Table 6 Main assumptions used for the economic calculations

From: Effects of production and market factors on ethanol profitability for an integrated first and second generation ethanol plant using the whole sugarcane as feedstock

Parameter

Value

IRR after tax, above inflation

10%

NPV duration

20 years

Tax rate

34%

Period of tax-deductible linear depreciation in capital cost

10 years

Plant scrap value

None

Payment of total project investment prior to start-up

12 months

Working capital (% of turnover)

20%

Financing

100% equity

Currency basis

2011 US$

  1. IRR, internal rate of return; NPV, net present value.