JUN: 11 '87 11:00 IMF WASH DC RAPICOM6300 477-7491
-12-
P.020
8.03
Among the other assumptions used in developing the base case financial projections none is regarded as presenting a substantial risk, Naturally, there must be some question about CIC's capacity to find US$8 million per year of suitable investments. As indicated in the Market section (para 3.01 - 3.10 above), based on past performance there are hundreds of projects each year involving more than US$1 million each of total investment and most of them involved Hong Kong partners. CIC is confident that with its excellent connections in Hong Kong and internationally it will be possible to meet the targets of 4-8 projects involving an aggregale Cie Investant of US$8 million. In the final analysis, our sensitivity analysis shows that even if the annual rate of investment is only US$4 million, other things being equal, the project IRR only drops to an acceptable 14.4%.