MSDI

Alcala de Henares Manager (Route B) Analysis

Years Ending December 31

Projected Ampule Volume
(000)

1988

1989

1990

1991

1992

1993

4,590

4,258

4,166

4,020

3,854

3,702

Projected Operating Costs

Semiautomatic Equipment:*
Materials
Direct Labor
Overhead**
TOTAL

14,872
29,376
44,248
88,496

14,900
29,431
44,331
88,662

15,744
31,099
46,843
93,686

16,407
32,410
48,817
97,634

16,988
33,557
50,546
101,091

17,624
34,812
52,436
104,872

Projected Operating Costs,

New Photoelectric Equipment:*
Materials
Direct Labor
Overhead**
TOTAL

13,678
11,750
44,248
69,676

13,704
11,773
44,331
69,808

14,480
12,440
46,843
73,763

15,091
12,964
48,817
76,872

15,625
13,423
50,546
79,594

16,210
13,925
52,436
82,571

18,820
5,618
13,203
4,621

18,854
5,618
13,237
4,633

19,923
5,618
14,306
5,007

20,762
6,153
14,610
5,113

21,497
6,153
15,345
5,371

22,301
6,153
16,149
5,652

14,199

14,221

14,916

15,649

16,126

16,649

Equipment cost
Less salvage
Less tax loss
Net Investment

61,525
950
229
60,346

Annual Cash Savings

Less Added Depreciation
Taxable income
Taxes
Net Cash Flow

(60,346)

Discount Rate

20%

NPV =
IRR =
NPV

5,306 pesetas (000s)

22.4%
$

41,781 USD

Comparison of Exchange Rate Models:

PPP
Spanish Inflation Rate =
8.0%
US Inflation Rate =
2.0%
PPP Exchange Rate Forecast

134.5

142.4

150.8

159.6

169.0

179.0

IFE
Spanish Interest Rate =
US Interest Rate =
IFE Exchange Rate Forecast

132.4

138.0

143.8

149.9

156.3

162.9

13.2%
8.6%

1994

1995

1996

1997

3,566

3,443

3,335

3,240

18,334
36,216
54,551
109,101

19,118
37,764
56,883
113,765

20,000
39,506
59,506
119,012

20,985
41,451
62,436
124,872

16,863
14,487
54,551
85,901

17,584
15,106
56,883
89,573

18,395
15,803
59,506
93,704

19,301
16,581
62,436
98,318

23,200
6,153
17,048
5,967

24,192
6,153
18,040
6,314

25,308
6,153
19,156
6,704

26,554
6,153
20,402
7,141

17,233

17,878

18,604

19,413

189.5

200.6

212.4

224.9

169.8

177.0

184.5

192.3