MIS - information please, page-2

The reduction in gross proceeds for deferring the annual service fee for the 2008 MIS project is::
Years 1 to 6: 4% plus GST.
Years 7 to 10: 3% plus GST.
Years 11 to 12: 2% plus GST.
The worked example in the PDS (page 11) shows the following

	Column 1	Column 2	Column 3
0	Year	Annual fee $ per 1/6 Ha	% gross proceeds paid to TFC to defer annual fee
1	2010​	1,200​	4​
2	2011​	1,224​	4​
3	2012​	1,248​	4​
4	2013​	1,273​	4​
5	2014​	1,299​	4​
6	2015​	1,325​	4​
7	2016​	1,351​	3​
8	2017​	1,378​	3​
9	2018​	1,406​	3​
10	2019​	1,434​	3​
11	2020​	1,463​	2​
12	2021​	1,492​	2​
13	2022​	0​	​
14	2023​	0​	​
15	Total​	​	40​

An independent “expert” research estimated after tax rate of return for the ‘pay your annual fees’ at 8% to 15.5% whereas the ‘defer you fees’ alternative at 7.6% to 13.9%. Therefore it is superior to pay your annual fees.
TFC reported: (http://www.tfsltd.com.au/files/1014/6252/7921/First_Buy_Back_Offers_Made_to_Acquire_MIS_Assets.pdf )
“The majority of growers in the TFS2000 Project deferred their annual management fees and can expect to generate a 3.4x return (pre-tax) on their investment, providing an annualised Internal Rate of Return of 9.9% (pre-tax). Growers who pre-paid their management fees can expect to achieve a 3.2x return (pre-tax) and the small number of growers who paid their annual management fees a 1.8x return (pre-tax).”
For the 2000 project it was superior to defer the annual fees. This suggests the 2000 project had a more favourable (to the grower) formula then the formula that applies to the 2008 project.