Tucson Transatlantic Trade, Inc. Holding Group

Project Due Diligence
Investment Ranking Analysis Criteria

The TTT, Inc. Holding Group considers 3 Categories in its Project Due Diligence Analysis:

The listed point rankings for each Criterion below may be reviewed quarterly by the TTT Board of Directors.

The maximum project score is 2,950 points, with 1,120 points allocated to country/company factors, and 1,830 points allocated to the specific project factors. The minimum score for TTT investment eligibility is 80% or 2,360 points. Within the running list of projects submitted to TTT, Inc. Holding Group, highest rated projects will receive funding priority, with TTT Senior Management reserving discretion to make exceptions for cause.

Point rankings are derived from a wide range of sources including US OPIC, World Bank, Standard and Poors, etc., as well as a several authoritative references books on project feasibility analysis, especially "Economic Evaluation and Investment Decision Methods, 10th Edition", by Franklin and John Stermole, 2000, Investment Evaluations Corporation.

  1. Country and Partner Company Business Plan Criteria:

    1. Number of Market Niches of $ 250 Million Sales Potential per Year each and 10% Growth Rate Potential per Year (Documentation Required):

      • In USA:
        • 4 Niches: 10 points
        • 3 Niches: 6 points
        • 2 Niches: 4 points
        • 1 Niche: 2 points

      • In Asia Pacific:
        • 4 Niches: 8 points
        • 3 Niches: 6 points
        • 2 Niches: 4 points
        • 1 Niche: 2 points

      • In Europe:
        • 4 Niches: 8 points
        • 3 Niches: 6 points
        • 2 Niches: 4 points
        • 1 Niche: 2 points

      • In Latin America:
        • 4 Niches: 6 points
        • 3 Niches: 4 points
        • 2 Niches: 3 points
        • 1 Niche: 2 points

      • In Africa:
        • 4 Niches: 6 points
        • 3 Niches: 4 points
        • 2 Niches: 2 points
        • 1 Niche: 1 point

    2. Number of Major Product/Service Offerings your company has introduced to its Market Niches as related to Financial Breakeven of each, in past Year (detailed documentation required):

      • 4 Offerings with Breakeven of 1 Year: 20 points
      • 4 Offerings with Breakeven of 2 Years: 15 points
      • 4 Offerings with Breakeven of 3 Years: 10 points
      • 3 Offerings with Breakeven of 1 Year: 12 points
      • 3 Offerings with Breakeven of 2 Years: 10 points
      • 3 Offerings with Breakeven of 3 Years: 8 points
      • 2 Offerings with Breakeven of 1 Year: 8 points
      • 2 Offerings with Breakeven of 2 Years: 6 points
      • 2 Offerings with Breakeven of 3 Years: 4 points

    3. Company Size (Submit Organizational Chart):

      • Less than 50 Employees: 3 points
      • Between 51 and 75: 4 points
      • Between 76 and 100: 6 points
      • Between 101-150: 10 points
      • Between 151-300: 7 points
      • Between 301 and 1000: 5 points
      • More than 1000: 3 points

    4. Company Strategic Goals (Documentation Required):

      1. Profitability in past 3 Years:
        • 5% or less Average Net Profits: 3 points
        • 6-8% Average Net Profits: 5 points
        • 9-11% Average Net Profits: 7 points
        • 12-16% Average Net Profits: 9 points
        • 17-25% Average Net Profits: 12 points
        • More than 26% Average Net Profits: 15 points

      2. Market Share Global Increase in past 3 Years:
        • Less than 5%: 3 points
        • 5-7% Gain: 5 points
        • 8-10% Gain: 7 points
        • 11-15% Gain: 9 points
        • 16-20% Gain: 12 points
        • More than 20% Gain: 15 points

      3. Customer Satisfaction Ratings in past Year (List name of 10 largest customers and Method of customer satisfaction measurement):
        • 90% or less: 2 points
        • 91-94%: 5 points
        • 95-97%: 9 points
        • 98-99.9%: 15 points

      4. Cycle Time Reduction in Product/Service Introductions in past Year (Documentation required):
        • 10% or Less: 4 points
        • 11-20%: 7 points
        • 21-40%: 10 points
        • 41-50%: 14 points
        • More than 50%: 20 points

    5. Innovation: Number of Patents/Trade Secrets in past 3 Years:

      • 3 or less: 2 points
      • 4 to 6: 5 points
      • 7 to 10: 8 points
      • 11 to 15: 12 points
      • More than 15: 15 points

    6. Company Distribution Channel Capability in Millions of US Dollars/Year (Documentation required):

      1. Direct Sales:

        Distributor 1 Capability for TTT-related Sectors:

        • Less than 10 million USD/Year: 3 points
        • 11-25 million USD/Year: 6 points
        • 26-50 million USD/Year: 10 points
        • More than 50 million USD/Year: 20 points

        Distributor 2 Capability:

        • Less than 10 million USD/Year: 3 points
        • 11-25 million USD/Year: 6 points
        • 26-50 million USD/Year: 10 points
        • More than 50 million USD/Year: 20 points

      2. Indirect Sales:

        Distributor 1 Capability for TTT-related Sectors:

        • Less than 10 million USD/Year: 2 points
        • 11-25 million USD/Year: 4 points
        • 26-50 million USD/Year: 7 points
        • More than 50 million USD/Year: 13 points

        Distributor 2 capability:

        • Less than 10 million USD/Year: 2 points
        • 11-25 million USD/Year: 4 points
        • 26-50 million USD/Year: 7 points
        • More than 50 million USD/Year: 13 points

    7. Top 3 Product/Services Profit Margin in Past Year (Documentation required):

      Service/Product 1:

      • Less than 5%: 2 points
      • 5-10%: 5 points
      • 11-20%: 8 points
      • 21-40%: 13 points
      • More than 40%: 20 points

      Service/Product 2:

      • Less than 5%: 2 points
      • 5-10%: 5 points
      • 11-20%: 8 points
      • 21-40%: 13 points
      • More than 40%: 20 points

      Service/Product 3:

      • Less than 5%: 2 points
      • 5-10%: 5 points
      • 11-20%: 8 points
      • 21-40%: 13 points
      • More than 40%: 20 points

    8. Top 3 Customers in declining order of Profits obtained per customer in past Year (Documentation required):

      Customer 1:

      • Less than 500,000 USD: 3 points
      • between 500,000 and 1 million USD: 6 points
      • between 1 and 3 million USD: 10 points
      • between 3 and 5 million USD: 15 points
      • More than 5 million USD: 20 points

      Customer 2:

      • Less than 500,000 USD: 3 points
      • between 500,000 and 1 million USD: 6 points
      • between 1 and 3 million USD: 10 points
      • between 3 and 5 million USD: 15 points
      • More than 5 million USD: 20 points

      Customer 3:

      • Less than 500,000 USD: 3 points
      • between 500,000 and 1 million USD: 6 points
      • between 1 and 3 million USD: 10 points
      • between 3 and 5 million USD: 15 points
      • More than 5 million USD: 20 points

    9. Implementation of Statistical Management Tools in Company Operations (Documentation required):

      1. DOE/FMEA (Design of Experiment/Failure Mode Effects Analysis):
        • in at least 3 Financial processes: 8 points
        • in at least 3 Manufacturing processes: 7 points
        • in at least 3 Technology R/D processes: 10 points
        • in at least 3 Customer Relationship Management processes: 10 points
        • in at least 3 Information Technology processes: 10 points

      2. ANOVA/Hypothesis Testing:
        • in at least 5 Financial processes: 6 points
        • in at least 5 Manufacturing processes: 4 points
        • in at least 5 Technology R/D processes: 6 points
        • in at least 5 Customer Relationship processes: 6 points
        • in at least 5 Information Technology processes: 7 points

      3. Process Control Charts:
        • in at least 7 Financial processes: 7 points
        • in at least 7 Manufacturing processes: 6 points
        • in at least 7 Technology R/D processes: 7 points
        • in at least 7 Customer Relationship Management processes: 7 points
        • in at least 7 Information Technology processes: 7 points

    10. Number of Direct Competitors for your Products/Services (Documentation Required on your Activities in Each Region):

      1. in USA:
        • Less than 3 Competitors: 10 points
        • 3 to 5 Competitors: 8 points
        • 6 to 10 Competitors: 4 points
        • 11 to 25 Competitors: 2 points
        • More than 25 Competitors: 1 point

      2. in Europe:
        • Less than 3 Competitors: 8 points
        • 3 to 5 Competitors: 5 points
        • 6 to 10 Competitors: 3 points
        • 11 to 25 Competitors: 2 points
        • More than 25 Competitors: 1 point

      3. in Asia Pacific:
        • Less than 3 Competitors: 8 points
        • 3 to 5 Competitors: 5 points
        • 6 to 10 Competitors: 3 points
        • 11 to 25 Competitors: 2 points
        • More than 25 Competitors: 1 point

      4. in Latin America:
        • Less than 3 Competitors: 6 points
        • 3 to 5 Competitors: 4 points
        • 6 to 10 Competitors: 3 points
        • 11 to 25 Competitors: 2 points
        • More than 25 Competitors: 1 point

      5. in Africa:
        • Less than 3 Competitors: 4 points
        • 3 to 5 Competitors: 3 points
        • 6 to 10 Competitors: 2 points
        • 11 to 25 Competitors: 1 point

    11. International Certifications (Submit copies of Certificates):

      1. ISO 9001 Certification: Yes: 15 points

      2. ISO 14001 Certification: Yes: 15 points

      3. AS 9000 Certification: Yes: 15 points

      4. QS 9000 Certification: Yes: 15 points

      5. US FDA Certification: Yes: 15 points

      6. ASME/TUV Certification: Yes: 15 points

    12. Service/Product Lifecycle for Top 4 most Profitable Products/Services (Documentation required):

      1. Most Profitable Product/Service 1:
        • Less than 6 months: 12 points
        • 6 months to 1 year: 7 points
        • 1 to 2 years: 5 points
        • More than 2 years: 2 points

      2. Most Profitable Product/Service 2:
        • Less than 6 months: 12 points
        • 6 months to 1 year: 7 points
        • 1 to 2 years: 5 points
        • More than 2 years: 2 points

      3. Most Profitable Product/Service 3:
        • Less than 6 months: 12 points
        • 6 months to 1 year: 7 points
        • 1 to 2 years: 5 points
        • More than 2 years: 2 points

      4. Most Profitable Product/Service 4:
        • Less than 6 months: 12 points
        • 6 months to 1 year: 7 points
        • 1 to 2 years: 5 points
        • More than 2 years: 2 points

    13. Information Technology Systems in Place (Documentation required):

      1. ERP (Enterprise Resource Planning, SAP, etc.): yes: 10 points

      2. CRM (Customer Relationship, Siebel etc): yes: 8 points

      3. SCM (Supply Chain Management): yes: 8 points

      4. Oracle Database/Financials: yes: 10 points

      5. Risk Management: yes: 8 points

      6. CAD/CAM/CAE: yes: 8 points

      7. FEA (Finite Element Analysis): yes: 8 points

    14. Senior Management Team (CV/Resumes attached). Number of Succesful Startups and/or Senior Management Positions in at least 2 Firms, plus Years of Experience:

      1. President/CEO:
        • More than 3 Startups and 15 years of experience: 15 points
        • 2 Startups/Positions and 10 years of experience: 8 points
        • 1 Startup/Position and more than 5 years of experience: 5 points
        • 1 Startup/Position and less than 5 years of experience: 2 points

      2. CFO:
        • More than 3 Startups and 15 years of experience: 15 points
        • 2 Startups/Positions and 10 years of experience: 8 points
        • 1 Startup/Position and more than 5 years of experience: 5 points
        • 1 Startup/Position and less than 5 years of experience: 2 points

      3. COO/General Manager/VP Operations:
        • More than 3 Startups and 15 years of experience: 15 points
        • 2 Startups/Positions and 10 years of experience: 8 points
        • 1 Startup/Position and more than 5 years of experience: 5 points
        • 1 Startup/Position and less than 5 years of experience: 2 points

      4. Marketing Manager:
        • More than 3 Startups and 15 years of experience: 15 points
        • 2 Startups/Positions and 10 years of experience: 8 points
        • 1 Startup/Position and more than 5 years of experience: 5 points
        • 1 Startup/Position and less than 5 years of experience: 2 points

      5. Manufacturing Manager:
        • More than 3 Startups and 15 years of experience: 15 points
        • 2 Startups/Positions and 10 years of experience: 8 points
        • 1 Startup/Position and more than 5 years of experience: 5 points
        • 1 Startup/Position and less than 5 years of experience: 2 points

      6. Information Technology Manager/Chief Information Officer:
        • More than 3 Startups and 15 years of experience: 15 points
        • 2 Startups/Positions and 10 years of experience: 8 points
        • 1 Startup/Position and more than 5 years of experience: 5 points
        • 1 Startup/Position and less than 5 years of experience: 2 points

    15. Management and Employee Ownership in the Company (Documentation required):

      1. CEO/CFO/COO:
        • More than 50%: 12 points
        • 30 to 50%: 8 points
        • 15 to 30%: 4 points
        • Less than 15%: 2 points

      2. Other Management:
        • More than 50%: 10 points
        • 30 to 50%: 7 points
        • 15 to 30%: 4 points
        • Less than 15%: 2 points

      3. Rest of Employees:
        • More than 50%: 10 points
        • 30 to 50%: 7 points
        • 15 to 30%: 4 points
        • Less than 15%: 2 points

      4. Venture Capital or Bank Investor:
        • More than 50%: 10 points
        • 30 to 50%: 7 points
        • 15 to 30%: 4 points
        • Less than 15%: 2 points

    16. Is the Company listed on a Public Stock Exchange (Submit listing Prospectus):

      • New York Stock Exchange/NASDAQ: 20 points
      • European Tier I/II Exchange: 12 points
      • Asia Pacific Tier I/II Exchange: 10 points
      • Latin American Tier I/II Exchange: 6 points
      • African Tier I/II Exchange: 4 points

    17. Use of Profit Increase per Year based Stock Options/Bonus Plans:

      1. for Senior Management:
        • based on 15% Profit Increase or More: 15 points
        • based on 10 to 15% Profit Increase: 12 points
        • based on 5 to 10% Profit Increase: 8 points
        • based on 1 to 5% Profit Increase: 4 points

      2. for Rest of Employees:
        • based on 15% Profit Increase or More: 10 points
        • based on 10 to 15% Profit Increase: 8 points
        • based on 5 to 10% Profit Increase: 6 points
        • based on 1 to 5% Profit Increase: 4 points

    18. Nature of the Company's Board of Directors: Number of Non-Management Directors from Nationally/Internationally recognized Banks/Firms:

      • More than 4: 15 points
      • 4: 12 points
      • 3: 8 points
      • 2: 5 points
      • 1: 3 points

    19. Completeness/Feasibility of Company Written Business Plan for Current Fiscal Year (Submit Business Plan and Financial Statements):

      1. Technology/Product Strategic Competitive Advantage: 1 to 5 points
      2. Management/Personnel: 1 to 5 points
      3. Markets/Marketing Methods/Distribution: 1 to 5 points
      4. Manufacturing Processes/Equipment/Plants: 1 to 5 points
      5. Financial Goals: 1 to 5 points
      6. SWOT (Strengths/Weaknesses/Opportunities/Threats) Analysis: 1 to 20 points: on:
        • Management
        • Administration
        • Marketing
        • Sales
        • Finance
        • Engineering
        • Production
        • Purchasing
        • Distribution
        • International Expansion
        • Service
        • Quality Assurance
        • Policies
        • Information Technology

    20. Number of Active Joint Ventures/Strategic Alliances (Documentation Required):

      1. in Home Country:
        • 3 or More: 8 points
        • 2: 4 points
        • 1: 2 points

      2. With USA:
        • 3 or More: 8 points
        • 2: 4 points
        • 1: 2 points

      3. With Europe:
        • 3 or More: 8 points
        • 2: 4 points
        • 1: 2 points

      4. With Asia Pacific:
        • 3 or More: 8 points
        • 2: 4 points
        • 1: 2 points

    21. Company Facilities Capacity Utilization (Documentation required):

      • More than 90%: 5 points
      • 81 to 90%: 4 points
      • 71 to 80%: 3 points
      • 61 to 70%: 2 points
      • 50 to 60%: 1 point

    22. Company Average Hourly Wages Paid (all Employees including Management):

      • More than 30 US Dollars: 1 point
      • 20 to 29 US Dollars: 2 points
      • 15 to 19 US Dollars: 5 points
      • 10 to 14 US Dollars: 8 points
      • 5 to 9 US Dollars: 6 points
      • Less than 5 US Dollars: 3 points

    23. Corporate Income Tax Rate in Home Country:

      • 35% and More: 3 points
      • 30 to 34%: 6 points
      • 25 to 29%: 9 points
      • 20 to 24%: 12 points
      • Less than 20%: 15 points

    24. Gross Domestic Product Growth in Home Market in past 2 Years (Documentation required):

      • 5% or More: 10 points
      • 3 to 5%: 6 points
      • 1 to 3%: 3 points

    25. Gross Domestic Product Growth in Key Foreign Markets (By Sales Volume):

      In Key Foreign Market 1:

      • 5% or More: 10 points
      • 3 to 5%: 6 points
      • 1 to 3%: 3 points

      In Key Foreign Market 2:

      • 5% or More: 10 points
      • 3 to 5%: 6 points
      • 1 to 3%: 3 points

      In Key Foreign Market 3:

      • 5% or More: 10 points
      • 3 to 5%: 6 points
      • 1 to 3%: 3 points

    26. Inflation Rate Percentage Change in past Year in Home Country:

      • 5% or More: 1 point
      • 3 to 5%: 2 points
      • 1 to 3%: 4 points
      • Less than 1%: 9 points

    27. Exchange Rate Percentage Change of Home Currency versus US Dollar (Reference Source Data):

      • Increase of 5% or More: 2 points
      • Increase of 2 to 5%: 4 points
      • Increase of 0 to 2%: 6 points
      • Decrease of 0 to 2%: 9 points
      • Decrease of 2 to 5%: 14 points

    28. 3 Month Interest Rate Change in past Year in Home Country (Reference Source Data):

      • 10% or More Change: 2 points
      • 8 to 10% Change: 4 points
      • 6 to 8% Change: 6 points
      • 4 to 6% Change: 10 points
      • Less than 4% Change: 14 points

    29. Oil Price Cost Increase in Past Year in Home Country (Reference Source Data and Actual Per Barrel Costs):

      • 20% or More: 14 points
      • 15 to 20%: 12 points
      • 10 to 15%: 10 points
      • 5 to 10%: 8 points
      • 0 to 5%: 4 points

      Natural Gas Cost Increase in Past Year in Home Country (Reference Source Data and Actual MMBTU Costs):

      • 20% or More: 14 points
      • 15 to 20%: 12 points
      • 10 to 15%: 10 points
      • 5 to 10%: 8 points
      • 0 to 5%: 4 points

    30. Standard and Poors or IBCA Country Risk Rating:

      • AAA-AA Investment Grade: 12 points
      • A Investment Grade: 8 points
      • B Investment Grade: 5 points
      • C Non-Investment Grade: 2 points

      Company's Main Bank Rating:

      • AAA-AA Investment Grade: 12 points
      • A Investment Grade: 8 points
      • B Investment Grade: 5 points
      • C Non-Investment Grade: 2 points

    31. Legal System Stability for Debt Collections and Intellectual Property Rights (Reference Source Data):

      • Good: 15 points

  2. Suggested Joint Venture Project Business Plan Criteria:

    1. Requested Cash Investment Requested from TTT System:

      • Less than 250,000 US Dollars: 5 points
      • Between 250,000 and 500,000 US Dollars: 7 points
      • Between 500,000 and 1 million US Dollars: 10 points
      • Between 1 and 2 million US Dollars: 13 points
      • Between 2 and 5 million US Dollars: 15 points
      • Between 5 and 10 million US Dollars: 12 points
      • More than 10 million US Dollars: 8 points

    2. Completeness/Feasibility of Suggested Project Business Plan:

      1. Profit Forecasts for Next 3 Years:
        • Sales (and Assumptions): 1 to 4 points
        • Cost of Sales: 1 to 4 points
        • Itemized Operating Costs: 1 to 4 points
        • Net Profits Before Tax: 1 to 4 points
        • Net Profits After Tax: 1 to 4 points

      2. Cash Flow Forecast for Next 3 Years:
        • Cash receipts (and Assumptions): 1 to 4 points
        • Cash payments to creditors/Wages: 1 to 4 points
        • Operating Costs (Itemized): 1 to 4 points
        • Financial Costs (Dividends, Taxes, Fees, Loan Payments, etc.): 1 to 4 points
        • Depreciation: 1 to 4 points
        • New cash investments: 1 to 4 points
        • Major asset acquisition/disposals: 1 to 4 points
        • Share capital: 1 to 4 points

    3. Shared Energy Savings/Shared Operational Efficiency Improvement Commitment:

      50% Sharing for:

      • 10 years or more: 20 points
      • 8 to 10 years: 15 points
      • 6 to 8 years: 10 points
      • 4 to 6 years: 5 points

    4. Value Forecast for TTT System (Documentation required):

      • More than 50% ROI per year: 20 points
      • 35 to 50% ROI per year: 15 points
      • 25 to 35% ROI per year: 12 points
      • 15 to 25% ROI per year: 9 points
      • 5 to 15% ROI per year: 4 points

    5. Technology Transfer Tax Levels in Project Home Country (Reference Data source):

      1. Withholding Tax on Royalties:
        • Less than 2%: 8 points
        • 2 to 5%: 6 points
        • 6 to 9%: 4 points
        • 10% or More: 2 points

      2. Withholding Tax on Sale of Assets:
        • Less than 2%: 8 points
        • 2 to 5%: 6 points
        • 6 to 9%: 4 points
        • 10% or more: 2 points

      3. Cross-Border Transfer Pricing Restrictions:
        • No: 5 points

      4. Deductability of License Fees/Royalty Payments over no more than 5 Years:
        • 100% of Fees/Payments: 8 points
        • 80 to 99%: 6 points
        • 50 to 79%: 4 points
        • 25 to 49%: 2 points
        • Less than 25%: 1 point

      5. Depreciation of Intangible Assets:
        • Less than 2%: 2 points
        • 3 to 5%: 4 points
        • 6 to 9%: 6 points
        • 10% or More: 8 points

      6. Value Added Tax:
        • 20% or More: 0 points
        • 12 to 19%: 2 points
        • 8 to 11%: 4 points
        • 4 to 7%: 6 points
        • 3% or Less: 8 points

      7. Customs Duties:
        • 20% or More: 0 points
        • 12 to 19%: 2 points
        • 8 to 11%: 4 points
        • 4 to 7%: 6 points
        • 3% or Less: 8 points

    6. Real Cost of Oil in Project Country compared to Cost in USA:

      • 200% or More: 8 points
      • 150 to 199%: 6 points
      • 100 to 149%: 4 points
      • 50 to 99%: 2 points

      Real Cost of Natural Gas in Project Country compared to Cost in USA:

      • 200% or More: 8 points
      • 150 to 199%: 6 points
      • 100 to 149%: 4 points
      • 50 to 99%: 2 points

      Real Cost of Coal in Project Country compared to Cost in USA:

      • 200% or More: 8 points
      • 150 to 199%: 6 points
      • 100 to 149%: 4 points
      • 50 to 99%: 2 points

      Real Cost of Biomass Raw Materials in Project Country compared to cost in USA:

      • 200% or More: 8 points
      • 150 to 199%: 6 points
      • 100 to 149%: 4 points
      • 50 to 99%: 2 points

    7. Availability of US OPIC Financing (including Risk Insurance) compared to US Prime Rate or London Interbank Overnight Rate of Interest:

      • USPR/LIBOR plus 3 to 5%: 2 points
      • USPR/LIBOR plus 1 to 2%: 5 points
      • USPR/LIBOR: 14 points
      • Less than USPR/LIBOR: 20 points

    8. Availability of US EXIM Bank Financing compared to US Prime Rate or LIBOR Rate of Interest:

      • USPR/LIBOR plus 3 to 5%: 2 points
      • USPR/LIBOR plus 1 to 2%: 5 points
      • USPR/LIBOR: 14 points
      • Less than USPR/LIBOR: 20 points

    9. Availability of European Union or Japan Government Export Insurance/Financing compared to US Prime Rate or LIBOR Rate of Interest:

      • USPR/LIBOR plus 3 to 5%: 2 points
      • USPR/LIBOR plus 1 to 2%: 5 points
      • USPR/LIBOR: 14 points
      • Less than USPR/LIBOR: 20 points

    10. Availability of Fixed Float/Futures Swaps and/or EFP Instruments and/or Options Contracts (Calls/Puts) as Hedging Tools (List Names of Hedging Firms used):

      1. on USA Commodities or Futures Exchange (List Name):

        • Hedge Fund: 8 to 40 points
        • Bank: 8 to 40 points
        • Independent Trader: 8 to 40 points
        • Licensed Broker: 8 to 40 points
        • Arbitrageur: 8 to 40 points

      2. on European Union Commodities or Futures Exchange (List Name):

        • Hedge Fund: 8 to 30 points
        • Bank: 8 to 30 points
        • Independent Trader: 8 to 30 points
        • Licensed Broker: 8 to 30 points
        • Arbitrageur: 8 to 30 points

      3. on Asia Pacific Commodities or Futures Exchange (List Name):

        • Hedge Fund: 8 to 24 points
        • Bank: 8 to 24 points
        • Independent Trader: 8 to 24 points
        • Licensed Broker: 8 to 24 points
        • Arbitrageur: 8 to 24 points

    11. Project NPV (Net Present Value) and DCFROR (After Tax Discounted Cash Flow Rate of Return). CRITICAL!! Show All Calculations!!

      1. NPV (Net Present Value) assuming 20% Discount Rate/Opportunity Cost/DCFROR:

        • 12% or more per year: 30 points
        • 7 to 11% per year: 21 points
        • 4 to 6% per year: 13 points
        • 1 to 3% per year: 7 points

      2. DCFROR Method Used:

        • Single Payment Compound Amount: 10 points
        • Single Payment Present Worth Factor: 5 points
        • Uniform Series Compound Amount: 15 points
        • Uniform Series Present Worth Factor: 5 points
        • Sinking Fund Deposit Factor: 5 points
        • Capital Recovery Factor: 5 points

      3. Sensitivity Analysis by Expected Value or Range Method for:

        • Revenue Assumptions:
          • Optimistic/Best: 5 points
          • Medium/Expected: 10 points
          • Pessimistic/Worst: 5 points

        • Cost/Operating Expense Assumptions:
          • Optimistic: 5 points
          • Medium: 10 points
          • Pessimistic: 5 points

        • Exchange Rate and Cost of Capital:
          • Optimistic: 5 points
          • Medium: 10 points
          • Pessimistic: 5 points

        NOTE: Sensitivity Analysis should be carried out preferably via:

        • Monte Carlo Probability Analysis (minimum 100 runs)
        • Decision Tree Chart

      4. Risk Adjusted Cash Flow/Cost Escalation Analysis per CPI Indices:

        • Inflation: 1 to 7 points
        • Supply/Demand: 1 to 7 points
        • Technology Obsolescence: 1 to 7 points
        • Markets: 1 to 7 points
        • Environmental/Other Regulatory Action: 1 to 7 points
        • Political Instability: 1 to 7 points
        • Natural Disasters: 1 to 3 points

      5. Interest Compounding:

        • Discrete End of Period Dollars, Discrete Compounding: 10 points
        • Discrete End of Period Dollars, Continuous Compounding: 15 points
        • Continuously Flowing Dollars, Continuous Compounding: 20 points
        • Add-on/Flat Compounding: 5 points

      6. Rate of Return (ROI) and Internal Rate of Return (IRR) Analysis:

        Method used:

        • Present Value: 10 points
        • Annual Value: 5 points
        • Future Worth: 5 points

      7. Completeness of:

        • Cumulative Cash Flow Diagram: 20 points
        • Cumulative NPV Diagram: 20 points
        • Incremental NPV Diagram on Alternative Project Steps: 30 points

    12. Availability of Project Tax Credits:

      • 5% or Less of project Value: 2 points
      • 6 to 10%: 4 points
      • 11 to 15%: 6 points
      • 16 to 20%: 8 points
      • More than 20%: 12 points

    13. Completeness of Answers to:

      • TTT Facility Utilization Questionnaire (28 questions): 1 to 40 points
      • TTT Energy Systems Questionnaire (8 questions): 1 to 32 points

    14. Availability of Bond Financing: Value over US Treasury Bill Rate + Equity Premium + Beta Volatility:

      • No Early Call (14 year) Bond:
        • 10% or More: 20 points
        • 5 to 10%: 8 points
        • 3 to 5%: 5 points
        • 1 to 3%: 2 points

      • Early Call (4 years) Bond:
        • 10% or More: 10 points
        • 5 to 10%: 6 points
        • 3 to 5%: 3 points
        • 1 to 3%: 1 point

    15. Project Present Value Ratio [NPV / [Present Worth+Negative Cash Flows]] (Growth ROR/MIRR Analysis upon Reinvestment of Profits):

      • Larger than 5 over Project Life: 30 points
      • between 3 and 5: 20 points
      • between 2 and 3: 10 points
      • between 1 and 2: 5 points
      • between 0 and 1: 2 points

    16. Utilization of Activity Based Costing:

      • yes: 20 points

    17. Project Breakeven Period:

      • 12 to 24 months: 20 points
      • 25 to 36 months: 13 points
      • 37 to 48 months: 7 points
      • 49 to 60 months: 3 points

    18. Escrow Fund Availability for Year 1 Projected Energy/Operational Efficiency Improvement Savings:

      • in USA: 20 points
      • in European Union: 15 points
      • in Asia Pacific: 15 points

    19. Availability of Non-Cash Tax Deduction in both US and in Project Country:

      1. Depreciation per USA MACRS Schedule (Straight Line or Declining Balance):
        • 4 years or Less: 20 points
        • 5 to 10 years: 8 points
        • 10 to 16 years: 4 points
        • 16 to 25 years: 2 points

      2. Depletion:
        • Less than 10% per Year: 3 points
        • 10 to 15%: 6 points
        • 15 to 20%: 9 points
        • More than 20%: 12 points

      3. Amortization (Intangibles):
        • Less than 2 Years: 12 points
        • 2 to 4 years: 8 points
        • 4 to 6 years: 4 points
        • More than 6 years: 2 points

      4. Availability of Write-Offs for Land/Working Capital:
        • yes: 10 points

      5. Availability of Loss Carry Forwards:
        • yes: 10 points

    20. Availability of "Expensed" Deductions in same year of occurrence (Labor, Materials, Parts, Supplies, Utilities, Taxes, R/D costs):

      • 20 to 40% of Project Costs: 3 points
      • 40 to 60%: 5 points
      • 60 to 80%: 8 points
      • 80 to 100%: 12 points

    21. Capital Gains Taxes:

      • No: 15 points

    22. Working Capital: Inventory Accounting Method:

      • LIFO: 10 points

    23. Fair Market Value Determination:

      • Replacement Cost: 2 points
      • Comparable Sales: 2 points
      • Discounted Cash Flows: 8 points

    24. Return on Capital/Assets Employed (ROCE, Net Income/Asset Book Value):

      • Less than 10% per Year: 2 points
      • 10 to 20%: 5 points
      • 20 to 30%: 8 points
      • 30 to 40%: 14 points
      • 40 to 50%: 20 points

    25. EVA (Economic Value Added) System in place:

      • yes: 10 points

    26. Leasing versus Purchasing:

      • Operating Lease: 5 points
      • Capital Lease: 10 points
      • Purchasing: 15 points

    27. Project Funding using Borrowed Funds:

      • Non-Recourse Loans: 15 points

    28. Project Debt Service Ratio (Cash Flow/Debt Payment):

      • Greater than 5: 20 points
      • 4 to 5: 12 points
      • 3 to 4: 8 points
      • 2 to 3: 4 points
      • 1 to 2: 2 points

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