Technoeconomic and Policy Analysis for Corn Stover Biofuels

Table 3

Differences in financing assumptions.

Engineering analysis	Economic analysis
Land paid with equity	Land included in capital investment and cost is divided between financing and equity
Tax benefits or losses carry over	Tax benefits or losses occur in the year they occur
Interest is paid with equity during construction	Interest is compounded annually during construction (interest is capitalized)
Loan and interest are not included in computing taxes	Loan interest is deductible for purposes of tax calculations
Inflation is assumed to be zero	Inflation is assumed to be 2.5%