vitro project - sale of equity louise ,
i believe the following will clarify the question from our meeting yesterday ,
the $ 20 mm figure that i was showing to you represents the npv ( discounted @ 17 . 6 % ) of the future cashflows of the project for 100 % ownership from june / 01 through dec / 17 . this number does not include the moneys than enron will have put into the project by that time . the amount put by enron by that time will be $ 18 mm ( for 100 % )
if we do de transaction , we will get the following cashflows :
the premium $ 14 . 1 mm
reimbursement of 80 % of the $ 18 mm already put by enron $ 14 . 4 mm
keep 20 % of future npvs $ 4 . 0 mm
the potential investor will contribute in the future the equity contributions for 50 % of the ownership
the potential investor will give us in june / 01 the amount of future equity contributions for the 30 % of the ownership
the above shows the cashflows that we will be received under the 2 alternatives but this does not reflect the transaction from an earnings perspective .
from the earnings perspective , the following is a simplified estimation of earnings for the next 7 years under the two situations :
please , let me know if you need further clarification
thanks , mar ? a elena
p . s . regarding the $ 23 mm npv number that you see in max ' s presentation , that is the project npv when all cashflows discounted @ 13 . 2 % . the irr for the project is 17 . 6 %
vitro project - sale of equity
louise ,
i believe the following will clarify the question from our meeting yesterday ,
the $ 20 mm figure that i was showing to you represents the npv ( discounted @ 17 . 6 % ) of the future cashflows of the project for 100 % ownership from june / 01 through dec / 17 . this number does not include the moneys than enron will have put into the project by that time . the amount put by enron by that time will be $ 18 mm ( for 100 % )
if we do de transaction , we will get the following cashflows :
the premium $ 14 . 1 mm
reimbursement of 80 % of the $ 18 mm already put by enron $ 14 . 4 mm
keep 20 % of future npvs $ 4 . 0 mm
the potential investor will contribute in the future the equity contributions for 50 % of the ownership
the potential investor will give us in june / 01 the amount of future equity contributions for the 30 % of the ownership
the above shows the cashflows that we will be received under the 2 alternatives but this does not reflect the transaction from an earnings perspective .
from the earnings perspective , the following is a simplified estimation of earnings for the next 7 years under the two situations :
please , let me know if you need further clarification
thanks , mar ? a elena
p . s . regarding the $ 23 mm npv number that you see in max ' s presentation , that is the project npv when all cashflows discounted @ 13 . 2 % . the irr for the project is 17 . 6 %