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CONFIDENTIAL
Our
item they omitted the cost of the money. estimate of total cost, taking their estimates and capitalising also the costs they left out, with interest of 7% per annum, comes to $2.774 million for the initial system and $6,647 million for the preferred system. But even these amended figures, since they are based on 1970 prices, will inevitably need to be further increased to take account of rising costs, particularly for equipment.
Our cost accountants are now working on the profitability and cash requirement of both schemes.
You will see from what I have said that we are still in the preliminary stages and far from the point of going firm on any particular method of financing, or considering how the various contracts should be awarded although it is likely that our normal tender procedures would be followed, and we would certainly not be able, for instance, to allow tenderers, from whatever country, to reopen and adjust sealed bids in order to meet known competition.
еле
Yuus
Daria.
₤191 lli
CONFIDENTIAL