Under the assumption that Ideko’s market share will increase by 0.5% per year (and the investment and financing will be adjusted as described in Problem 3), you project the following depreciation:

Year 2005 2006 2007 2008 2009 2010 Fixed Assets and Capital Investment ($ 000)

2 3

New Investment 5,000 5,000 5,000 5,000 5,000 20,000 Depreciation (5,500) (5,450) (5,405) (5,365) (5,328) (6,795)

Using this information, project net income through 2010 (that is, reproduce Table 19.7 under the new assumptions).