Appendix 1 Plywood Mill Model production costs

:

10 years old

:

90%

Investment period

:

20 years

Production capacity

:

90,000 m³/year

:

10% domestic @ US$250/m³

:

90% export @ US$450/m³

Total production cost

:

US$100/m³+log cost

Total capital investment

:

US$20.6m (depreciated value)

Replacement capital investment

:

Mobile - US$1.8m every 5 years from year 2 onwards

Stationery - US$1.7m every 2 years from year 2 onwards.

Debt/equity ratio

:

40%/60%

Interest rate

:

15% (real)

Corporate tax rate

:

35%