A. Initial investment

1. It is estimated that it would take one year to purchase and install plant and equipment.

2. Imported machinery and equipment will cost $9 million. No import duties will be levied by the Mexican government. With a small allowance for banking fees, the bill will come to Ps 65.5 million.

3. The plant would be set up on government-owned land that will be sold to the project for Ps 6.5 million.

4. IMC plans to maintain effective control of the subsidiary with ownership of 60% of equity. The remaining 40% is to be distributed widely among Mexican financial institutions and private investors. Accordingly. IMC needs to invest U.S. $6 million in the project.