O-09 the profitability index in the evaluation of the quality of wood biomass generation business profit and loss model

Abstract

IRR(Internal Rate of Return) is one of the effective evaluation index of the profitability of the biomass generation business. However, the setting of the hurdle rate to enable business is affected by multiple factor. On the profit and loss model of the 5,700kW biomass generation business with that in mind, I performed the sensitivity analysis by equity ratio was provide to confirmed the influence that the balance of equity and debt gave in capital cost. Evaluation of the profitability allows the assumptions such as procurement cost, the price of fuel..