Exhibit B

10,000 10,000 10,000 S₀^/ = 2.00/

1,000 i = 5%

time 0 1 2 3 i = 7%

Assume 50 percent of the projects expected cash flows are retained in the host country until the project is three years old. The opportunity cost of these funds is i = 5 percent, but these blocked funds earn no interest. What is the NPV of the opportunity cost from these blocked funds?

		569.16
		598.24
		625.80
		658.68
		683.22