Data/hora: 03/06/2024 01:29:28

Provedor de dados: 	31	
País: 	United States	
Título: 	Ethanol Plant Investment using Net Present Value and Real Options Analyses	
Autores: 	Schmit,   Todd M.; Luo,   Jianchuan; Tauer,   Loren W.	
Data: 	2008-08-13	
Ano: 	2008	
Palavras-chave: 	Ethanol; Net Present Value; Real Options Analyses; Environmental Economics and Policy; Financial Economics; Production Economics; Resource /Energy Economics and Policy; D21; D81; Q4.	
Resumo: 	A real option analysis of dry-grind corn ethanol plants compared to a standard net present value analysis (NPV) shows that the option values increase entry prices and lower exit prices of investment and disinvestment considerably. For a large plant, the gross margin of ethanol price over the corn price for a gallon of ethanol using NPV shows that entry will occur with a $0.45 margin and shutdown will occur at a $0.38. Under a real options framework, the margins for entry and exit become $1.33 and $0.13, respectively. Under baseline conditions, a large operating plant would become mothballed at $0.18 and reactivate if margins rebounded to $0.66. Growth in the variability of ethanol margins will delay new plant investments, as well as exits of currently operating facilities.	
Tipo: 	Working or Discussion Paper	
Idioma: 	Inglês	
Identificador: 	http://purl.umn.edu/51145	
Relação: 	Cornell University&gt;Department of Applied Economics and Management&gt;Working Papers

Working Paper

WP 2008-14	
Formato: 	35