Abstract CarnaudMetalbox, Vychodoslovenske Zeleziarne Kosice and CassoviaInvest have decided to create the Joint Venture. The partners in the Joint Venture will be the CarnaudMetalbox, the Vychodoslovenske Zeleziarne Kosice (VSZ) and the CassoviaInvest (CI). Management control of the Join Venture will be vested by agreement in CarnaudMetalbox. The long-term objective is to create an environment in which the two-organisation work together to increase the availability of tin-plates from VSZ to CarnaudMetalbox in Central Europe. The immediate objective is to create a business that will add value to the tin-plate product of VSZ. This will be done in two ways. The manufacture and sale within CarnaudMetalbox of standard ends of large diameter and thickness. The sale to CarnaudMetalbox Hungary and CarnaudMetalbox Slovakia of scrolled tin-plate. CarnaudMetalbox is one of the leading packaging manufacturers in the world with a turnover in excess of FRF 24 bn ($ 4.3 bn). The Group's operations are focused on metal and plastic packaging, providing companies involved in food processing, beverages, health & beauty and household products with their packaging requirements on a world-wide basis. The Group employs more than 31 000 people at 198 factories in 38 countries. Total investment (100 %) will be 56 100 KFF from which 27 450 KFF (49 %) will invest CarnaudMetalbox, 27 450 KFF (49 %) will invest VSZ and 1 200 KFF (2 %) will invest CassoviaInvest. CarnaudMetalbox will invest from 27 450 KFF in the first year 18 450 KFF and 9 000 KFF in the second year. VSZ will invest from 27 450 KFF in the first year 23 950 KFF and 3500 KFF in the second year. CassoviaInvest will invest 1 200 KFF, total quantity in the first year. In calculation is the depreciation done not by depreciating of all investment, but there is depreciated each item separately. There is different in the depreciation between the years and also between items. Personnel Cost: In it is included Monthly Salary for workers with tax, Social Insurance and Cars for the management. The number of workers and the number of shifts in each department multiply all this. Cost of production is divided in to the three parts. Cost of production for Ends, cost of production for Metal Sheet Slovakia, and cost of production for Metal Sheet Hungary. Calculation is based on direct costs, indirect cost which are from production capacity, numbers of workers, material costs and on data, from the other branches of CarnaudMetalbox Alimentaire, which are located in France, Belgium and Hungary and are adapted on technological conditions in Slovakia. In operating cost are included all production costs per one unit of production and multiplied by the real production capacity which will be in JV KOSICE each year. Revenues are calculated like result of the yearly production capacity and price for Sheet for Slovakia, Sheet for Hungary and Unit Ends. Calculating of Cash Flow (CF), Discounted Cash Flow (DCF), Sum of Discounted Cash Flow (SDCF), Net Present Value (NPV), Pay Back Period (PBP) and Internal Rate of Return (IRR) is done by way like is described in Volume (A). First is calculating "Project itself". It means there is not influence of the Taxes or the Borrowing. Only Investment, Revenues Operating Costs and Working Capital took part in this calculation. Working Capital is considered like sum of Stocks (finished goods ends 1 month), Debtors (1 month sales) and Creditors (payment at 30 days). Working Capital KFF Second calculation "Effect of the Taxes" is done by influence of the Taxes. JV KOSICE like new plant has special Tax, guarantee by Slovak Low, first two years is tax 0 %, therefore losses cannot be carried forward, second two years is tax 30 % and finally is tax 40 %. Cash Flow is result of the Investment, Revenues, Operating Costs, Working Capital, Depreciation and Taxes. This is project, which will be probably applied in Kosice. Sensitivity study is done in case, project "Effect of Taxes", because all others calculations will try to follow same economical results. Sensitivity is done in interval + - 2.5 % because in this plant is profit margin in two cases 3 % and in one case 9 %. Second reason for this interval is all important influence items on calculation are more - less fixed by management. There is small influence of the other environment. Third calculation is done by influence of the Borrowing. Because in new JV KOSICE is not considered borrowing, in calculation is chosen version 50 % own Investment and 50 % Borrowing. There is not delay time because production will start in the first year of existing plant and, it will brings Revenues. Term of borrowing is 10 years for each of two loans, which are divided by same rate like investment. This is "Complete Project". Calculation is based on Investment, Revenues, Operating Costs, Working Capital, Depreciation, Debt Service of Loans and Taxes. Target of this calculation is to find with which interest rate is borrowing interesting, it means that can bring at least the same result like without borrowing. Calculation is done with lifetime of project 25 years because of repaying loans term and depreciation term, in order to see influence, which will have disappearing of those items in calculating of Cash Flow. Lifetime of machinery project is difficult to estimate, it is depending on market and supplying possibilities. Fourth calculation is again complete calculation with Taxes and Borrowing, but there is debt service only 5 years, it means all borrowing must be repaid after five years of the borrowing time. Target is to see which influence will have this time of repaying on interest rate with getting the same result. Fifth simulation is similar like fifth, but there we can see influence of amount of borrowing. It means term of borrowing is 10 years but amount is only 25 % from total investment. Last calculation is done in a way, what will happened if JV will take borrowing in Slovakia and which interest rate can by accepted if inflation of the Slovak currency will be 10 %. In generally even in the best solution are NPV, PBP and IRR quite debatable values. But even of that machinery industry is not so risky industry, and term of this projects is usually quite a long time, sometimes hundred years. There is guarantee of always positive CF in the year, which brings dividends to shareholders. Input is more less sure, because is coming from the biggest plant in Slovakia, which main activity is production of the steel. Customers for this production of JV KOSICE are guaranteed by the international network of CarnaudMetalbox and maybe like the most important advantage we can count, that production of JV KOSICE because of relatively small margin of the profit can by used like interesting input to the other CarnaudMetalbox plants, which we can call profit making plants.