Table 1 Assumptions for nth-plant isobutanol production

Internal rate of return (IRR)

10%

Plant financing by equity

50%

Plant life

30 years

Income tax rate

21%

Interest rate for debt financing

8%

Term for debt financing

10 years

Working capital cost

5% of fixed cost investment (FCI)

Land purchase cost

1% of fixed cost investment (FCI)

Depreciation schedule

7-year MACRS schedule

Start-up time

6 months

Revenue and cost during startup

Revenue = 50% of normal

Variable costs = 75% of normal

Fixed costs = 100% of normal

Operating hours per year

7920