Inputs Volume 600,000 per month Labor $180,000 per month Fixed Costs $300,000 per year Inflation 2.00% Volume 7,200,000 per year Labor $2,160,000 per year Opportunity Cost $60,000 use of annex Real rate 15.88% Price per $5.00 pesos Energy $50,000 per month Cannibalize $800,000 after tax per year Raw Mtris per $1.80 pesos Energy $600,000 per year Overhead 1.00% of sales Hola-Kola Project Analysis Note: $ is symbol for Mexican Peso in this analysis. 0 1 2 3 4 CAPEX Rev $36,000,000 $41,717,647 $41,717,647 $41,717,647 $41,717,647 Machinery $ 50,000,000 Raw Mtrls $12,960,000 $15,018,353 $15,018,353 $15,018,353 $15,018,353 Dep Life Labor $2,160,000 $2,503,059 $2,503,059 $2,503,059 $2,503,059 Deprec 10,000,000 Energy $600,000 $695,294 $695,294 $695,294 $695,294 GP $20,280,000 $23,500,941 $23,500,941 $23,500,941 $23,500,941 Resale $ 4,000,000 FC $300,000 $347,647 $347,647 $347,647 $347,647 BV Term Dep $10,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000 Gain (Loss) 4,000,000 Overhead $360,000 $483,434 $483,434 $483,434 $483,434 Tax 1200000 OC $60,000 $60,000 $60,000 $60,000 $60,000 Net EBIT $9,560,000 $12,609,860 $12,609,860 $12,609,860 $12,609,860 Tax $2,868,000 $3,782,958 $3,782,958 $3,782,958 $3,782,958 NOPAT $6,692,000 $8,826,902 $8,826,902 $8,826,902 $8,826,902 Rates Dep $10,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000 WACC 18.20% OC $16,692,000 $18,826,902 $18,826,902 $18,826,902 $18,826,902 Tax 30.00% AWC -$4,964,400 $4,284,000 Working Capital CAPEX $50,000,000 $2,800,000 Inventory 1,080,000 $ 1,251,529 1,251,529 Cannib A/R 4,500,000 $ 5,214,706 5,214,706 FCF -$54,964,400 $16,692,000 $18,826,902 $18,826,902 $18,826,902 $25,910,902 A/P 1,296,000 $ 1,501,835 1,501,835 WC Balance 4,284,000 $ 4,964,400 $ 4,964,400 NPV $4,153,140 Breakeven Units AWC $ 4,284,000 680,400 $