Inflatio Mexico Tax rate
7% 35% 2008
2009
Projected Operating Costs, Manual Process Unit volume (000s) Materials Direct Labor Overhead Total Materials/unit Direct labor/unit
496 564,816 1,115,184 1,680,000 3,360,000 1.1387 2.2484
Projected Operating Costs, New Automatic Equipment Unit volume (000s) Materials Direct Labor Overhead Total
496 542,223 524,136 1,566,211 2,632,570
Materials/unit Direct labor/ unit Cash Flow (MXN) (+) Cost Savings (-) Tax on savings (+) Sell old machine Book Value old mach Booked loss on asset sale (+) Tax shield from write of (-) Purchase new mach Depreciation (+) Tax shield from dep. (-) Service of loan Balance To principal Interest (9.21%) (+) Tax Shiel interest (+) Savage value Total Cash flow NPV @ Pesos @8% Convert in Euros @15.99MXN/E
1.0932 1.0567
727,430 254,601 175,000 250,000 75,000 26,250 3,500,000
3,500,000
(3,298,750) (532,801) (33,321)
350,000 122,500 550,422 3,271,928 228,072 322,350 112,823 157,730
2010
2011
2012
2013
2014
2015
546 600 660 660 660 660 664,788 782,456 920,951 985,417 1,054,396 1,128,204 1,312,572 1,544,897 1,818,343 1,945,627 2,081,821 2,227,549 1,797,600 1,923,432 2,058,072 2,202,137 2,356,287 2,521,227 3,774,960 4,250,785 4,797,366 5,133,181 5,492,504 5,876,980 1.2185 1.3037 1.395 1.4927 1.5971 1.7089 2.4057 2.5741 2.7543 2.9471 3.1534 3.3742
546 600 660 660 660 660 638,197 751,158 884,113 946,001 1,012,221 1,083,076 616,909 726,101 854,621 914,445 978,456 1,046,948 1,675,846 1,793,155 1,918,676 2,052,983 2,196,692 2,350,460 2,930,952 3,270,414 3,657,410 3,913,429 4,187,369 4,480,484 1.1697 1.1307
844,008 295,403
1.2516 1.2098
1.3392 1.2945
1.433 1.3852
1.5333 1.4821
1.6406 1.5859
980,371 1,139,956 1,219,752 1,305,135 1,396,496 343,130 398,985 426,913 456,797 488,774
350,000 122,500 550,422 3,022,851 249,077 301,345 105,471
350,000 122,500 550,422 2,750,834 272,017 278,405 97,442
350,000 122,500 550,422 2,453,764 297,070 253,352 88,673
350,000 122,500 550,422 2,129,334 324,430 225,992 79,097
350,000 122,500 550,422 1,775,024 354,310 196,112 68,639
350,000 122,500 550,422 1,388,082 386,942 163,480 57,218
226,154
306,761
401,723
444,014
489,055
537,019
2016
2017
2018
CAGR
660 660 660 1,207,178 1,291,681 1,382,099 2,383,477 2,550,321 2,728,843 2,697,713 2,886,553 3,088,611 6,288,368 6,728,555 7,199,553 1.8286 1.9566 2.0935 3.6104 3.8631 4.1335
660 660 660 1,158,891 1,240,014 1,326,815 1,120,234 1,198,651 1,282,556 2,514,993 2,691,042 2,879,415 4,794,118 5,129,707 5,488,786 1.7554 1.6969
1.8783 1.8157
2.0098 1.9427
1,494,250 1,598,848 1,710,767 522,988 559,597 598,768
350,000 122,500 550,422 965,502 422,579 127,842 44,745
350,000 122,500 550,422 504,003 461,499 88,923 31,123
588,086
642,452
350,000 122,500 550,422 0 504,003 46,419 16,247 0 700,323
10.0%
Inflatio Mexico Tax rate
7% 35%
2008 Projected Operating Costs, Manual Process Unit volume (000s)
Materials Direct Labor Overhead Total Materials/unit Direct labor/unit
2009
2010
496 546 564,816 664,788 1,115,184 1,312,572 1,680,000 1,797,600 3,360,000 3,774,960 1.1387 1.2185 2.2484 2.4057
Projected Operating Costs, New Automatic Equipment Unit volume (000s) 496 546 Materials 542,223 638,197 Direct Labor 524,136 616,909 Overhead 1,566,211 1,675,846 Total 2,632,570 2,930,952 Materials/unit Direct labor/ unit
a)
Cash Flow (MXN) (+) Cost Savings (-) Tax on savings (+) Sell old machine Book Value old mach Booked loss on asset sale (-) Loss f depreciation of old machine (+) Tax shield from write of (-) Purchase new mach Depreciation (+) Tax shield from dep. (+) Savage value Total Cash flow NPV @ Pesos @12.19% Convert in Euros @15.99MXN/E Wacc in Euros Wacc in pesos Euros CF's
1.0932 1.0567
1.1697 1.1307
727,430 254,601
844,008 295,403
(29,167)
(29,167)
175,000 250,000 75,000 26,250 3,500,000
(3,298,750) 1,478,997 92,495
350,000 122,500
350,000 122,500
566,163
641,938
8.00% 12.19% With Fisher effect adjusment -$206,301
$34,084
$37,201
b)
NPV in Euros @8% NPV in pesos
$92,495 $1,478,997
Inflation Mexico Inflation Euro PPP mMXN/Euro
7% 3% $15.99
7% 3% $16.61
7% 3% $17.26
Gov rate I rate Mexico Gov rate I rate France I Rat MXN/Euro
9.12% 4.81% $15.99
9.12% 4.81% $16.65
9.12% 4.81% $17.33
ExperMXN/Euro
$15.99
$20.00
$20.00
c) Adjust by inflation NPV in pesos Loan Capex Sedn to france
Balance Interest Principal Balance
(3,298,750) 869,715
566,162
621,430
3,298,750 869,715 Max int rate 4,168,465 12.19% 4,168,465
4,168,465
4,168,465 508,310 57,852 4,110,613
4,110,613 501,255 120,175 3,990,438
2011
2012
2013
2014
2015
2016
2017
600 660 660 660 660 660 660 782,456 920,951 985,417 1,054,396 1,128,204 1,207,178 1,291,681 1,544,897 1,818,343 1,945,627 2,081,821 2,227,549 2,383,477 2,550,321 1,923,432 2,058,072 2,202,137 2,356,287 2,521,227 2,697,713 2,886,553 4,250,785 4,797,366 5,133,181 5,492,504 5,876,980 6,288,368 6,728,555 1.3037 1.395 1.4927 1.5971 1.7089 1.8286 1.9566 2.5741 2.7543 2.9471 3.1534 3.3742 3.6104 3.8631
600 660 660 660 660 660 660 751,158 884,113 946,001 1,012,221 1,083,076 1,158,891 1,240,014 726,101 854,621 914,445 978,456 1,046,948 1,120,234 1,198,651 1,793,155 1,918,676 2,052,983 2,196,692 2,350,460 2,514,993 2,691,042 3,270,414 3,657,410 3,913,429 4,187,369 4,480,484 4,794,118 5,129,707 1.2516 1.2098
1.3392 1.2945
1.433 1.3852
1.5333 1.4821
1.6406 1.5859
1.7554 1.6969
1.8783 1.8157
980,371 1,139,956 1,219,752 1,305,135 1,396,496 1,494,250 1,598,848 343,130 398,985 426,913 456,797 488,774 522,988 559,597
(29,167)
350,000 122,500
350,000 122,500
350,000 122,500
350,000 122,500
730,574
863,471
915,339
970,838 1,030,222 1,093,763 1,161,751
$40,755
$46,367
$47,315
$48,308
350,000 122,500
$49,347
350,000 122,500
$50,432
350,000 122,500
$51,564
7% 3% $17.93
7% 3% $18.62
7% 3% $19.35
7% 3% $20.10
7% 3% $20.88
7% 3% $21.69
7% 3% $22.53
9.12% 4.81% $18.04
9.12% 4.81% $18.79
9.12% 4.81% $19.56
9.12% 4.81% $20.36
9.12% 4.81% $21.20
9.12% 4.81% $22.07
9.12% 4.81% $22.98
$20.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
683,820
783,440
915,339
970,838
1,030,222
866,394
888,710
3,990,438 486,601 197,219 3,793,219
3,793,219 462,552 320,888 3,472,331
3,472,331 423,422 491,917 2,980,414
2,980,414 363,437 607,401 2,373,014
2,373,014 289,369 740,853 1,632,161
1,632,161 199,029 667,365 964,795
964,795 117,649 771,061 193,734
2018
CAGR
660 1,382,099 2,728,843 3,088,611 7,199,553 2.0935 4.1335
660 1,326,815 1,282,556 2,879,415 5,488,786 2.0098 1.9427
1,710,767 10.0% 598,768
350,000 122,500 0 1,234,499
$52,744
7% 3% $23.41 9.12% 4.81% $23.93 $25.00
911,697
193,734 23,624 888,073 (694,339)
