2.4.2.3. Discounted payback period. A discounted cash flow model using
an internal rate of return (i.e., discount rate) of 10% was used to assess
financial feasibility. The discounted payback period represents the length of time it takes for the facility to achieve a financial break-even point (i.e., a net present value (NPV) equal to zero), assuming that the
fuel and feed are sold at certain market prices. The discounted payback period (DPB) is calculated by solving where DCFk is the discounted cash flow associated with the facility for
year k. Facility construction occurs during year 0 and full operation begins
in year 1. Therefore DCFk is calculated by