Inputs Initial Investment Loan Interest rate Period of loan Economic life Salvage value Average Price of...

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Inputs Initial Investment Loan Interest rate Period of loan Economic life Salvage value Average Price of product Production Volume Year 1 revenue Growth rate of revenue Fixed Cost (year 1) Variable cost (year 1) Working capital margin Risk free rate (US$) Risk premium beta Corporate bond spread for A-bond Relative volatility of equity to bond market Expected inflation rate in Chile Expected inflation rate in US Cost of debt (US$) Tax rate in Chile Cost of equity (US$) Depreciation Debt ratio Peso/US$ spot rate 4500 150 12.02% 10 10 1000 1000 8 8000 12% 2679 50% 10% 5% 5.5% 0.76 1.1% 2.2 8% 2% 5.8% 40% 9.180% 350 3.33% 470 Output Year Revenue Variable cost Fixed cost Operating profits Depreciation EBIT Taxes NOPAT Depreciation Working capital Change in WC Operating cash flow Cash flows (Pesos) Capital Expenditure (Pesos) Operating cash flows (Pesos) Salvage value (Pesos) PVIF Discounted cash flows NPV Cost of equity in Pesos Cost of debt in Pesos WACC in pesos 0 800 -800 0 -4500 -800 1 2 3 4 5 6 7 8 9 10 8000 8960 10035 11239 12588 14099 15791 17685 19808 22185 4000 4480 5018 5620 6294 7049 7895 8843 9904 11092 2679 2893 3125 3375 3645 3936 4251 4591 4959 5355 1321 1587 1893 2245 2649 3113 3644 4251 4945 5737 350 350 350 350 350 350 350 350 350 350 971 1237 1543 1895 2299 2763 3294 3901 4595 5387 388 495 617 758 920 1105 1318 1561 1838 2155 583 742 926 1137 1380 1658 1976 2341 2757 3232 350 350 350 350 350 350 350 350 350 350 800 896 1004 1124 1259 1410 1579 1769 1981 2218 96 108 120 135 151 169 189 212 238 -2218 837 984 1155 1352 1579 1839 2137 2479 2869 5801 1 2 837 984 3 4 1155 1352 5 6 1579 1839 7 2137 8 2479 9 2869 10 5801 1000 11 11 Cash flows (US$) Expected spot rate Capital Expenditure (US$) Operating cash flows Salvage value (US$) PVIF Discounted cash flows NPV 0 3 4 5 6 7 8 9 10 Discount rate in US$ Country equity premium for Chile Cost of equity (US$) WACC in US$ Inputs Initial Investment Loan Interest rate Period of loan Economic life Salvage value Average Price of product Production Volume Year 1 revenue Growth rate of revenue Fixed Cost (year 1) Variable cost (year 1) Working capital margin Risk free rate (US$) Risk premium beta Corporate bond spread for A-bond Relative volatility of equity to bond market Expected inflation rate in Chile Expected inflation rate in US Cost of debt (US$) Tax rate in Chile Cost of equity (US$) Depreciation Debt ratio Peso/US$ spot rate 4500 150 12.02% 10 10 1000 1000 8 8000 12% 2679 50% 10% 5% 5.5% 0.76 1.1% 2.2 8% 2% 5.8% 40% 9.180% 350 3.33% 470 Output Year Revenue Variable cost Fixed cost Operating profits Depreciation EBIT Taxes NOPAT Depreciation Working capital Change in WC Operating cash flow Cash flows (Pesos) Capital Expenditure (Pesos) Operating cash flows (Pesos) Salvage value (Pesos) PVIF Discounted cash flows NPV Cost of equity in Pesos Cost of debt in Pesos WACC in pesos 0 800 -800 0 -4500 -800 1 2 3 4 5 6 7 8 9 10 8000 8960 10035 11239 12588 14099 15791 17685 19808 22185 4000 4480 5018 5620 6294 7049 7895 8843 9904 11092 2679 2893 3125 3375 3645 3936 4251 4591 4959 5355 1321 1587 1893 2245 2649 3113 3644 4251 4945 5737 350 350 350 350 350 350 350 350 350 350 971 1237 1543 1895 2299 2763 3294 3901 4595 5387 388 495 617 758 920 1105 1318 1561 1838 2155 583 742 926 1137 1380 1658 1976 2341 2757 3232 350 350 350 350 350 350 350 350 350 350 800 896 1004 1124 1259 1410 1579 1769 1981 2218 96 108 120 135 151 169 189 212 238 -2218 837 984 1155 1352 1579 1839 2137 2479 2869 5801 1 2 837 984 3 4 1155 1352 5 6 1579 1839 7 2137 8 2479 9 2869 10 5801 1000 11 11 Cash flows (US$) Expected spot rate Capital Expenditure (US$) Operating cash flows Salvage value (US$) PVIF Discounted cash flows NPV 0 3 4 5 6 7 8 9 10 Discount rate in US$ Country equity premium for Chile Cost of equity (US$) WACC in US$