Ann: MALDIVES BORDER SECURITY PROJECT , page-5

Hi Morley - agreed Maldives contract is not something to get excited about other than a reference site. However, to do an appropriate IRR calculation, it is best to understand what is the direct cost (I do not know) of implementation for NBS. It would not be US$39 million.

If it was $39 million, then assuming $2.1 million income over 20 years with an upfront investment of $39 million, the project would generate a significant negative NPV (IRR not relevant) assuming discount factors of 15%-20%. If you assume a $5 million cost then IRR would be 42% at 20% discount rate or a $10 million cost would generate 20% IRR at same discount rate. From this point of view, return to NBS would be acceptable albeit not a company transforming project!