Skip to main content

Advertisement

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.