1987 1988 1989 1990 1991

us inflation 4% 17.35%

spanish 8%
salvage value 950,000
old machine ( book value) 1,605,000 535000 187250
loss 655000 229250
forecasted exchange rate (per 1 127 130 137 142.2 147.7
cost saaving 18820 18854 19923 20762
cost of new machine 61525 21533.75 2153.375 6152.5 2153.375
tax rate 35% 35% 35% 35%
tax amount 6587 6598.9 6973.05 7266.7
after tax cost sving 12233 12255.1 12949.95 13495.3
0ld machine after tax salvage 1179
old dep tax sheild 187 187 187
dep new machine after tax 2153.3 2153.3 2153.3 2153.3
cashflow -60346 14199.3 14221 14916 15648.6
in dollars $ (475.17) $ 111.81 $ 109.40 $ 104.90 $ 105.95
npv 12117.3606914929
converted in $ $95.41
 1992 1993 1994 1995 1996 1997

153.4 155.3 165.4 170 178.4 185.2

21497 22301 23200 24192 25308 26554

35% 35% 35% 35% 35% 35%

7523.95 7805.35 8120 8467.2 8857.8 9293.9
13973.05 14495.65 15080 15724.8 16450.2 17260.1

2153.3 2153.3 2153.3 2153.3 2153.3 2153.3

16126.35 16648.95 17233.3 17878.1 18603.5 19413.4
$ 105.13 $ 107.21 $ 104.19 $ 105.17 $ 104.28 $ 104.82