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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