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Table 1 Input data for variables and parameters

From: Subsidy policy selection of elderly care service projects under uncertain actual demand: a real options analysis based on China’s experience

Variables/Parameters

Description

Units

Values

It

Investment costs

CNY

60,000,000

P

Price of elderly care services

CNY/year

36,000

T

Whole lifetime of the ECSPs

year

30

Ns

Construction or Investment scale

bed

300

Scs

Construction subsidy

CNY/bed

12,000

Sps

Operating subsidy

CNY/person/year

4800

ρ

Construction subsidy adjustment coefficient

_

0.90

θ

Operating subsidy adjustment coefficient

_

0.90

μ

Premium cost coefficient

_

1.20

r

Risk-free interest rate

_

0.10

α

Risk-neutral drift rate

_

0.005

σ

Risk-neutral volatility rate

_

0.12