Euroland Foods

Euroland

FCF and Analysis of Proposed Projects

(all Values in Ђ millions)

Project 1 2 3 4 5 6 7 8 9

Expand Truck Fleet New Plant Expanded Plant Snack Foods Automation & Conveyer Systems Southward Expansion Eastward Expansion Artificial Sweetner Inventory Control System

Investment

Property 30.00 37.50 15.00 22.50 21.00 0.00 0.00 22.50 22.50

Working Capital 3.00 7.50 0.00 4.50 0.00 30.00 30.00 4.50 0.00

Year

0 -17.10 -45.00 -15.00 -9.00 -21.00 -30.00 -30.00 -27.00 -18.00

1 -11.85 3.00 1.88 -9.00 4.13 5.25 4.50 4.50 8.25

2 4.50 7.50 2.25 -9.00 4.13 6.00 5.25 6.00 8.25

3 5.25 8.25 2.63 4.50 4.13 6.75 6.00 6.75 7.50

4 6.00 9.00 3.00 4.50 4.13 7.50 6.75 7.50

5 6.75 9.38 3.38 6.00 4.13 8.25 7.50 7.50

6 7.50 9.75 3.75 6.75 4.13 9.00 8.25 7.50

7 10.50 10.13 2.25 7.50 4.13 9.75 9.00 7.50

8 7.50 2.25 8.25 10.50 9.75 7.50

9 7.88 2.25 9.00 11.25 10.50 7.50

10 8.25 2.25 9.75 12.00 11.25 7.50

Expected FCFC 11.55 35.64 10.89 29.25 7.91 56.25 48.75 42.75 6.00

(Undiscounted)

Payback (years) 6 6 6 7 6 5 5 5 3

Maximum Payback Accepted 4 5 5 6 4 6 6 6 4

IRR 7.8% 11.3% 11.3% 13.4% 8.7% 21.4% 18.8% 20.5% 16.2%

Minimum Acepted ROR 8.0% 10.0% 10.0% 12.0% 8.0% 12.0% 12.0% 12.0% 8.0%

Spread -0.2% 1.3% 1.3% 1.4% 0.7% 9.4% 6.8% 8.5% 8.2%

NPV (WACC 10.6%) -2.88 1.49 0.41 3.74 -1.31 17.99 13.49 13.43 1.75

NPV at Minimum ROR -0.19 2.81 0.82 1.79 0.48 14.85 10.62 10.97 2.67

10.6%

Equivalent Annuity -0.04 0.46 0.13 0.32 0.09 2.63 1.88 1.94 1.03

RANKINGS NOTE__> Effluent Treatment is considered Project #11

Ђ120M

Project Investment NPV Payback IRR EA PI

1 33 -2.88 6 7.8% -0.04 -0.087

2 45 1.49 6 11.3% 0.46 0.033

3 15 0.41 6 11.2% 0.13 0.027

4 27 3.74 7 13.4% 0.32 0.139

5 21 -1.31 6 8.7% 0.09 -0.062

6 30 17.99 5 21.4% 2.63 0.600

7 30 13.49 5 18.8% 1.88 0.450

8 27 13.43 5 20.5% 1.94 0.497

9 22.5 1.75 3 16.2% 1.03 0.078

10 60 69.45 5 27.5% 10.56 1.158

11 6 1.04 3 18.5% 0.85 0.173

OPTIMAL COMBINATION

Ђ120M

Project...