Type of project

New product or new markets

Product or market extension
Efficiency improvements
Safety or environmental

Minimum Acceptable IRR

12%
10%
8%
No test

Rank
1
2
3
4
5
6
7
8
9
10
Exhibit 3: Project Spending
Rank
1
2
3
4
5
6
7
8
9
10
Exhibit 4: Projects Net Cash Flow
Rank
1
2
3
4
5
6
7

8
9
10
Exhibit 5: Profitability Index
Rank
1
2
3
4
5
6
7
8
9
10
Exhibit 6: Payback Period
Rank
1
2
3
4
5
6
7
8
9
10

Exhibit 8
1st year cash flow |
Project| Strategic Acquisition| New Plant( Dijon,France)| Southward Expansion| Eastward
Year 2002| -30| 3| 5.25| 4.5| -11.85| 4.5| -9| 4.13| 8.25| 1.88|Exhibit 7: First Year Cash Flow
Projects
Strategic Acquisiti
New Plant( Dijon,F
Southward Expansi
Eastward Expansio
Expand Truck Fleet
Artificial Sweetene
Snack Foods
Automation and Co
Inventory-Control
Expanded Plant(N

Maximum Acceptable Payback Years

6 years
5 years
4 years
No test

Exhibit 2: Purely Financial Consideration

Projects
Strategic Acquisition
Southward Expansion
Artificial Sweetener
Eastward Expansion
Snack Foods
Inventory-Control System
New Plant( Dijon,France)
Expanded Plant(Nuremberg,Germany)
Automation and Conveyer Systems
Expand Truck Fleet

IRR
27.50%
21.40%
20.50%
18.80%
13.40%
16.20%
11.30%
11.20%
8.70%
7.80%

: Project Spending
Projects
Strategic Acquisition
New Plant( Dijon,France)
Southward Expansion
Eastward Expansion
Expand Truck Fleet
Artificial Sweetener
Snack Foods
Automation and Conveyer Systems
Inventory-Control System
Expanded Plant(Nuremberg,Germany)

Expenditure (EUR Million)

55
45
30
30
28.95
27
27
21
18
15

: Projects Net Cash Flow

Projects
Strategic Acquisition
Southward Expansion
Eastward Expansion
Artificial Sweetener
New Plant( Dijon,France)
Snack Foods
Expand Truck Fleet

Net Cash Flow (EUR Million)

198.5
56.25
48.75
42.75
35.63
29.25
11.55

Expanded Plant(Nuremberg,Germany)
Automation and Conveyer Systems
Inventory-Control System

10.88
7.88
6

: Profitability Index
Projects
Snack Foods
Strategic Acquisition
Expand Truck Fleet
Southward Expansion
Eastward Expansion
Artificial Sweetener
New Plant( Dijon,France)
Expanded Plant(Nuremberg,Germany)
Automation and Conveyer Systems
Inventory-Control System

Profitability Index
1.14
1.12
1.05
1
1
1
1
1
1
1

: Payback Period
Projects
Inventory-Control System
Strategic Acquisition
Artificial Sweetener
Southward Expansion
Eastward Expansion
Expand Truck Fleet
New Plant( Dijon,France)
Expanded Plant(Nuremberg,Germany)
Automation and Conveyer Systems
Snack Foods

Payback (Years)
3
5
5
5
5
6
6
6
6
7

uthward Expansion| Eastward Expansion| Expand Truck Fleet| Artificial Sweetener| Snack Foods| Automation

: First Year Cash Flow

Year 2001

Year 2002
-25
-45
-30
-30
-17.1
-27
-9
-21
-18
-15

-30
3
5.25
4.5
-11.85
4.5
-9
4.13
8.25
1.88

Payback (years)

NPV at Corp.WACC (10.6%)Million

5
5
5
5
7
3
6
6
6
6

69.45
17.99
13.43
13.49
3.74
1.75
1.49
0.41
-1.31
-2.88

ner| Snack Foods| Automation and Conveyer Systems| Inventory-Control System| Expanded Plant(Nuremberg

anded Plant(Nuremberg,Germany)| Year 2001| -25| -45| -30| -30| -17.1| -27| -9| -21| -18| -15| Year 2002| -30|

1| -18| -15| Year 2002| -30| 3| 5.25| 4.5| -11.85| 4.5| -9| 4.13| 8.25| 1.88|