Flender/Flender Gear Units/Helical gear units H2
2% of the mill. In addition, management is assumed to be able to make reasonable improvements in the operations of

the mill in order to achieve efficiency and productivity levels that are consistent with industry norms. 4. Scenario 4 assumes,

in addition to the assumptions in Scenario 3, that an additional 6,6 manzanas of land is put into cultivation in

order to reach total amount of cane land, both colono and IVJ, of 2,0 manzanas. Of the 6,6 new manzanas,

5.4 are assumed to be owned and cultivated by IVJ and 1,2 are assumed to be owned and cultivated by colonos. 5. Scenario 5 assumes, in addition to the assumptions in Scenario 4, that management is able to install two turbo-generators that it owns but which are not currently in operation in order to meet all of its electricity needs and sell excess energy to the national power grid. The financial projections are based on management' expectations of future performance; financial information on IVJ for the first 9 of 1 periods for fiscal year 1/9; performance indicators from 1/8 through 1/9; interviews with management of IVJ and CONAZUCAR, the state sugar corporation; and industry experts in cane cultivation and processing. The analysis does not re! on financial information from before 1/9 due to the distortions resulting from the numerous currency devaluations that occurred prior to July 1, 1. The cordoba -.. dollar exchange rate has been stable at 5:1 since the beginning of fiscal year 1/9 and so financial information over this period is assumed to be free of exchange rate distortions. -1 Following are detailed descriptions of the assumptions used in each scenario. The detailed assumptions are also listed in the assumptions table at the end of Appendix . Scenario 1: Base Case The Base Case is based on the historical performance of the mill and assumes that the mill continues to perform as it has in the past. Following is description of the Base Case. IVJ Land Proiected (Manzana