B2DH-8-C Selection and ordering data Dimensions in mm Gear Bevel-helical gearboxes B2

Flender/Flender Gear Units/Bevel-helical gearboxes B2

n the industry. Thus, the present value of the cash that could be realized from liquidation may be lower than the value listed above. . Summary and Conclusions IVJ is currently operating at loss and if it continues to be operated as it is now, the mill' value as an ongoing concern is zero. In order to become profitable, IVJ must implement operating improvements and increase the volume of cane that is processed in the mill. Under these conditions, the DCF analysis indicates that the mill could have positive value of up to 1.0 million cordobas ($3.2 million), depending on the specific operatiig assumptions and discount rate used to calculate the net present value. reasonable range of values may be estimated by limiting the analysis as follows: * Scenarios 3, 4, and 5 only * discount rate of 1% An average sugar price at the historically-based level ($1., and * An electricity price of .2 cordobas per kilowatt-hour The value suggested by these assumptions is 4 to 1 million cordobas ($9 to $2 million). The liquidation value of IVJ' assets is estimated at approximately 1 million (US $3 million). The cash liquidation value can be considered minimum value for the mill because an investor (or the Government of Nicaragua) should, at least, be able to realize this value by selling the mill' assets. However, an enterprise may be sold as going concern for less than the liquidation value due to employment objectives, anticipated future tax revenues, and other considerations. primary Government objective of privatization is for IVJ to continue as going concern. Thus, reasonable range for the value of IVJ is the going concern value of 4 to 1 million ($9 to $2 million). These estimated values are based on numerous assumptions (described in Appendix ) and are particularly sensitive to variations in the discount rate, average sugar price, and sale price of electricity. VIII -5 IX. PRIVATIZATION STRATEGY The Government of Nicaragua has deci