1 What are the incremental FCF for Project Atlantic that is being proposed by Whirlpool for years 1999 2007 2 What is the NPV of Project Atlantic without the terminal value 3 What is the NPV of Project Atlantic with the terminal value 4 According to your analysis should Whirlpool undertake Project Atlantic What if it does not get the terminal value West Percentage improvement EX 4 25 40 35 0 0 0 DSI reduction in year 3 4 8 4 2 0 0 0 DSI reduction 3 7 8 12 12 12 12 Forecast with ERP 2000 2001 2002 2003 2004 2005 Units 2,307 2,364 2,414 2,414 2,414 2,414 Additional margin EX 5 0 06 0 25 0 25 0 25 0 25 0 25 New margin 12 4 12 6 12 6 12 6 12 6 12 6 New price per unit COGS per unit (1 new margin) 210 52 210 97 210 97 210 97 210 97 210 97 Revenue Units price 485,632 498,748 509,301 509,301 509,301 509,301 COGS Units COGS per unit above 425,515 436,060 445,286 445,286 445,286 445,286 Margin Revenue COGS 60,117 62,688 64,015 64,015 64,015 64,015 DSI 42 37 33 33 33 33 Inventory COGS (DSI 365) 48963 40 44442 24 40258 73 40258 73 40258 73 40258 73 South time line 1 2 3 4 5 6 West division Forecast without ERP 2000 2001 2002 2003 2004 2005 Units EX 3 South 1,416 1,416 1,416 1,416 1,416 1,416 Revenue EX 3 283,549 283,549 283,549 283,549 283,549 283,549 COGS Revenue margin 237,308 237,308 237,308 237,308 237,308 237,308 Margin EX 3 46,241 46,241 46,241 46,241 46,241 46,241 Price per unit Revenue units 200 25 200 25 200 25 200 25 200 25 200 25 COGS per unit Cogs units 167 6 168 168 168 168 168 Margin per unit Margin units 33 33 33 33 33 33 Percentage margin Margin revenue 16 3 16 3 16 3 16 3 16 3 16 3 DSI EX 3 51 51 51 51 51 51 Inventory COGS (DSI 365) 33158 33158 33158 33158 33158 33158 Additional units from ERP Pre ERP availability EX 3 83 1 83 1 83 1 83 1 83 1 83 1 Target availability 92 92 92 92 92 92 92 Increase in availability Target Pre 1 11 11 11 11 11 11 Percentage of improvement EX 4 0 35 40 25 0 0 Percent of improvement in new sales We only sale 25 of the improvement 25 25 25 25 25 25 25 New units in year 0 0 13 3 15 2 9 5 0 0 0 0 New units 0 0 13 3 28 4 37 9 37 9 37 9 Calculation of inventory savings Target DSI reduction 12 12 12 12 12 12 12 Percentage improvement EX 4 0 35 40 25 0 0 DSI reduction in year 0 4 2 4 8 3 0 0 DSI reduction 0 4 2 9 12 12 12 Forecast with ERP 2000 2001 2002 2003 2004 2005 Units 1,416 1,429 1,444 1,454 1,454 1,454 Additional margin EX 5 0 00 0 10 0 25 0 25 0 25 0 25 New margin 16 3 16 4 16 6 16 6 16 6 16 6 New price per unit COGS per unit (1 new margin) 200 25 200 49 200 85 200 85 200 85 200 85 Revenue Units price 283,549 286,549 290,110 292,013 292,013 292,013 COGS Units COGS per unit above 237,308 239,532 242,073 243,662 243,662 243,662 Margin Revenue COGS 46,241 47,017 48,036 48,351 48,351 48,351 DSI 51 47 42 39 39 39 Inventory COGS (DSI 365) 33158 10 30712 58 27855 03 26035 11 26035 11 26035 11 Central time line 1 2 3 4 5 6 West division Forecast without ERP 2000 2001 2002 2003 2004 2005 Units EX 3 Central 978 978 978 978 978 978 Revenue EX 3 185,625 185,625 185,625 185,625 185,625 185,625 COGS Revenue margin 141,947 141,947 141,947 141,947 141,947 141,947 Margin EX 3 43,678 43,678 43,678 43,678 43,678 43,678 Price per unit Revenue units 189 87 189 87 189 87 189 87 189 87 189 87 COGS per unit Cogs units 145 2 145 145 145 145 145 Margin per unit Margin units 45 45 45 45 45 45 Percentage margin Margin revenue 23 5 23 5 23 5 23 5 23 5 23 5 DSI EX 3 67 67 67 67 67 67 Inventory COGS (DSI 365) 26056 26056 26056 26056 26056 26056 Additional units from ERP Pre ERP availability EX 3 76 8 76 8 76 8 76 8 76 8 76 8 Target availability 92 92 92 92 92 92 92 Increase in availability Target Pre 1 20 20 20 20 20 20 Percentage of improvement EX 4 0 0 40 40 20 0 Percent of improvement in new sales We only sale 25 of the improvement 25 25 25 25 25 25 25 New units in year 0 0 0 0 19 3 19 3 9 7 0 0 New units 0 0 0 0 19 3 38 7 48 4 48 4 Calculation of inventory savings Target DSI reduction 12 12 12 12 12 12 12 Percentage improvement EX 4 0 0 40 40 20 0 DSI reduction in year 0 0 4 8 4 8 2 4 0 DSI reduction 0 0 4 8 9 6 12 12 Forecast with ERP 2000 2001 2002 2003 2004 2005 Units 978 978 997 1,016 1,026 1,026 Additional margin EX 5 0 00 0 00 0 13 0 25 0 25 0 25 New margin 23 5 23 5 23 7 23 8 23 8 23 8 New price per unit COGS per unit (1 new margin) 189 87 189 87 190 19 190 49 190 49 190 49 Revenue Units price 185,625 185,625 189,621 193,606 195,449 195,449 COGS Units COGS per unit above 141,947 141,947 144,756 147,566 148,970 148,970 Margin Revenue COGS 43,678 43,678 44,865 46,040 46,478 46,478 DSI 67 67 62 57 55 55 Inventory COGS (DSI 365) 26056 02 26056 02 24668 07 23206 23 22447 60 22447 60 North time line 1 2 3 4 5 6 West division Forecast without ERP 2000 2001 2002 2003 2004 2005 Units EX 3 North 1,443 1,443 1,443 1,443 1,443 1,443 Revenue EX 3 280,901 280,901 280,901 280,901 280,901 280,901 COGS Revenue margin 251,083 251,083 251,083 251,083 251,083 251,083 Margin EX 3 29,818 29,818 29,818 29,818 29,818 29,818 Price per unit Revenue units 194 64 194 64 194 64 194 64 194 64 194 64 COGS per unit Cogs units 174 0 174 174 174 174 174 Margin per unit Margin units 21 21 21 21 21 21 Percentage margin Margin revenue 10 6 10 6 10 6 10 6 10 6 10 6 DSI EX 3 55 55 55 55 55 55 Inventory COGS (DSI 365) 37834 37834 37834 37834 37834 37834 Additional units from ERP Pre ERP availability EX 3 83 2 83 2 83 2 83 2 83 2 83 2 Target availability 92 92 92 92 92 92 92 Increase in availability Target Pre 1 11 11 11 11 11 11 Percentage of improvement EX 4 0 0 0 40 40 20 Percent of improvement in new sales We only sale 25 of the improvement 25 25 25 25 25 25 25 New units in year 0 0 0 0 0 0 15 3 15 3 7 6 New units 0 0 0 0 0 0 15 3 30 5 38 2 Calculation of inventory savings Target DSI reduction 12 12 12 12 12 12 12 Percentage improvement EX 4 0 0 0 40 40 20 DSI reduction in year 0 0 0 4 8 4 8 2 4 DSI reduction 0 0 0 4 8 9 6 12 Forecast with ERP 2000 2001 2002 2003 2004 2005 Units 1,443 1,443 1,443 1,458 1,474 1,481 Additional margin EX 5 0 00 0 00 0 00 0 13 0 25 0 25 New margin 10 6 10 6 10 6 10 7 10 9 10 9 New price per unit COGS per unit (1 new margin) 194 64 194 64 194 64 194 93 195 19 195 19 Revenue Units price 280,901 280,901 280,901 284,286 287,648 289,137 COGS Units COGS per unit above 251,083 251,083 251,083 253,739 256,394 257,722 Margin Revenue COGS 29,818 29,818 29,818 30,547 31,253 31,415 DSI 55 55 55 50 45 43 Inventory COGS (DSI 365) 37834 42 37834 42 37834 42 34897 76 31891 25 30361 80 1 2 3 4 5 6 2000 2001 2002 2003 2004 2005 EX 3 North 1,443 1,443 1,443 1,443 1,443 1,443 EX 3 280,901 280,901 280,901 280,901 280,901 280,901 Revenue margin 251,083 251,083 251,083 251,083 251,083 251,083 EX 3 29,818 29,818 29,818 29,818 29,818 29,818 Revenue units 194 64 194 64 194 64 194 64 194 64 194 64 Cogs units 174 0 174 174 174 174 174 Margin units 21 21 21 21 21 21 Margin revenue 10 6 10 6 10 6 10 6 10 6 10 6 EX 3 55 55 55 55 55 55 COGS (DSI 365) 37834 37834 37834 37834 37834 37834 EX 3 83 2 83 2 83 2 83 2 83 2 83 2 92 92 92 92 92 92 92 Target Pre 1 11 11 11 11 11 11 EX 4 0 0 0 40 40 20 We only sale 25 of the improvement 25 25 25 25 25 25 25 0 0 0 0 0 0 15 3 15 3 7 6 0 0 0 0 0 0 15 3 30 5 38 2 12 12 12 12 12 12 12 EX 4 0 0 0 40 40 20 0 0 0 4 8 4 8 2 4 0 0 0 4 8 9 6 12 2000 2001 2002 2003 2004 2005 1,443 1,443 1,443 1,458 1,474 1,481 EX 5 0 00 0 00 0 00 0 13 0 25 0 25 10 6 10 6 10 6 10 7 10 9 10 9 COGS per unit (1 new margin) 194 64 194 64 194 64 194 93 195 19 195 19 Units price 280,901 280,901 280,901 284,286 287,648 289,137 Units COGS per unit above 251,083 251,083 251,083 253,739 256,394 257,722 Revenue COGS 29,818 29,818 29,818 30,547 31,253 31,415 55 55 55 50 45 43 COGS (DSI 365) 37834 42 37834 42 37834 42 34897 76 31891 25 30361 80 Incremental Revenue All Combined Forecast without ERP 2000 2001 2002 2003 2004 2005 Units 6,108 6,108 6,108 6,108 6,108 6,108 Revenue 1,227,859 1,227,859 1,227,859 1,227,859 1,227,859 1,227,859 COGS 1,049,263 1,049,263 1,049,263 1,049,263 1,049,263 1,049,263 Margin 178,596 178,596 178,596 178,596 178,596 178,596 Inventory 148,697 148,697 148,697 148,697 148,697 148,697 Forecast with ERP 2000 2001 2002 2003 2004 2005 Units 6,144 6,214 6,299 6,343 6,368 6,375 Revenue 1,235,707 1,251,823 1,269,933 1,279,205 1,284,410 1,285,900 COGS 1,055,853 1,068,621 1,083,199 1,090,252 1,094,313 1,095,640 Margin 179,854 183,201 186,734 188,953 190,098 190,260 Inventory 146,012 139,045 130,616 124,398 120,633 119,103 Incremental 2000 2001 2002 2003 2004 2005 Units 36 106 191 235 260 267 Revenue 7,848 23,964 42,074 51,346 56,551 58,041 COGS 6,590 19,358 33,936 40,989 45,050 46,377 Margin 1,258 4,605 8,138 10,357 11,502 11,664 Inventory 2,685 9,652 18,081 24,299 28,064 29,594 Investment in inventory 2,685 6,967 8,429 6,218 3,765 1,529 CAPEX 1999 2000 2001 2002 2003 2004 2005 2006 2007 Capital equipment 4300 8600 6900 4100 Software licenses 600 300 Capital expenditures 4900 8900 6900 4100 Depreciation 1999 assets S L 5 years 980 980 980 980 980 2000 assets S L 5 years 1780 1780 1780 1780 1780 2001 assets S L 5 years 1380 1380 1380 1380 1380 2002 assets S L 5 years 820 820 820 820 820 Incremental Depreciation 980 2760 4140 4960 4960 3980 2200 820 Operation Expense rate 1999 2000 2001 2002 2003 2004 2005 2006 2007 Employees 50 50 50 50 Employees salary 45 2250 2250 2250 2250 Consultants 19 9 7 4 Consultants salary (annual) 184 8 3511 2 1663 2 1293 6 739 2 Task force 300 600 600 600 300 On going operational 600 1200 1800 2400 3000 3000 3000 3000 3000 License maintenance 100 200 300 400 400 400 400 400 Implementation Costs 6361 2 5513 2 6143 6 6289 2 4000 3700 3400 3400 3400 Other expense savings EX 6 621 1749 2544 3300 3457 3503 3534 3566 Incremental Operating Expenses 6361 2 4892 2 4394 6 3745 2 700 243 103 134 166 DCF 0 1 2 3 4 5 6 7 8 Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 Revenue 0 0

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1. What are the incremental FCF for Project Atlantic that is being proposed by Whirlpool for years 1999-2007? 2. What is the NPV of Project

1. What are the incremental FCF for Project Atlantic" that is being proposed by Whirlpool for years 1999-2007? 2. What is the NPV of Project Atlantic without the terminal value? 3. What is the NPV of Project Atlantic with the terminal value? 4. According to your analysis should Whirlpool undertake Project Atlantic? What if it does not get the terminal value?

West

Percentage improvement	EX 4	25%	40%	35%	0%	0%	0%
DSI reduction in year		3	4.8	4.2	0	0	0
DSI reduction		3	7.8	12	12	12	12

Forecast with ERP		2000	2001	2002	2003	2004	2005
Units		2,307	2,364	2,414	2,414	2,414	2,414
Additional margin	EX 5	0.06%	0.25%	0.25%	0.25%	0.25%	0.25%
New margin		12.4%	12.6%	12.6%	12.6%	12.6%	12.6%

New price per unit	COGS per unit /(1-new margin)	210.52	210.97	210.97	210.97	210.97	210.97
Revenue	Units*price	485,632	498,748	509,301	509,301	509,301	509,301
COGS	Units*COGS per unit above	425,515	436,060	445,286	445,286	445,286	445,286
Margin	Revenue - COGS	60,117	62,688	64,015	64,015	64,015	64,015

DSI		42	37	33	33	33	33
Inventory	COGS*(DSI/365)	48963.40	44442.24	40258.73	40258.73	40258.73	40258.73

South

time line			1	2	3	4	5	6

West division

Forecast without ERP			2000	2001	2002	2003	2004	2005
Units	EX 3	South	1,416	1,416	1,416	1,416	1,416	1,416
Revenue	EX 3		283,549	283,549	283,549	283,549	283,549	283,549
COGS	Revenue - margin		237,308	237,308	237,308	237,308	237,308	237,308
Margin	EX 3		46,241	46,241	46,241	46,241	46,241	46,241

Price per unit	Revenue/units		200.25	200.25	200.25	200.25	200.25	200.25
COGS per unit	Cogs/units		167.6	168	168	168	168	168
Margin per unit	Margin/units		33	33	33	33	33	33

Percentage margin	Margin/revenue		16.3%	16.3%	16.3%	16.3%	16.3%	16.3%

DSI	EX 3		51	51	51	51	51	51
Inventory	COGS*(DSI/365)		33158	33158	33158	33158	33158	33158


Additional units from ERP

Pre-ERP availability	EX 3		83.1%	83.1%	83.1%	83.1%	83.1%	83.1%
Target availability		92%	92%	92%	92%	92%	92%	92%

Increase in availability	Target/Pre -1		11%	11%	11%	11%	11%	11%
Percentage of improvement	EX 4		0%	35%	40%	25%	0%	0%
Percent of improvement in new sales	We only sale 25% of the improvement	25%	25%	25%	25%	25%	25%	25%
New units in year			0.0	13.3	15.2	9.5	0.0	0.0
New units			0.0	13.3	28.4	37.9	37.9	37.9

Calculation of inventory savings
Target DSI reduction		12	12	12	12	12	12	12
Percentage improvement	EX 4		0%	35%	40%	25%	0%	0%
DSI reduction in year			0	4.2	4.8	3	0	0
DSI reduction			0	4.2	9	12	12	12

Forecast with ERP			2000	2001	2002	2003	2004	2005
Units			1,416	1,429	1,444	1,454	1,454	1,454
Additional margin	EX 5		0.00%	0.10%	0.25%	0.25%	0.25%	0.25%
New margin			16.3%	16.4%	16.6%	16.6%	16.6%	16.6%

New price per unit	COGS per unit /(1-new margin)		200.25	200.49	200.85	200.85	200.85	200.85
Revenue	Units*price		283,549	286,549	290,110	292,013	292,013	292,013
COGS	Units*COGS per unit above		237,308	239,532	242,073	243,662	243,662	243,662
Margin	Revenue - COGS		46,241	47,017	48,036	48,351	48,351	48,351

DSI			51	47	42	39	39	39
Inventory	COGS*(DSI/365)		33158.10	30712.58	27855.03	26035.11	26035.11	26035.11

Central

time line			1	2	3	4	5	6

West division

Forecast without ERP			2000	2001	2002	2003	2004	2005
Units	EX 3	Central	978	978	978	978	978	978
Revenue	EX 3		185,625	185,625	185,625	185,625	185,625	185,625
COGS	Revenue - margin		141,947	141,947	141,947	141,947	141,947	141,947
Margin	EX 3		43,678	43,678	43,678	43,678	43,678	43,678

Price per unit	Revenue/units		189.87	189.87	189.87	189.87	189.87	189.87
COGS per unit	Cogs/units		145.2	145	145	145	145	145
Margin per unit	Margin/units		45	45	45	45	45	45

Percentage margin	Margin/revenue		23.5%	23.5%	23.5%	23.5%	23.5%	23.5%

DSI	EX 3		67	67	67	67	67	67
Inventory	COGS*(DSI/365)		26056	26056	26056	26056	26056	26056


Additional units from ERP

Pre-ERP availability	EX 3		76.8%	76.8%	76.8%	76.8%	76.8%	76.8%
Target availability		92%	92%	92%	92%	92%	92%	92%

Increase in availability	Target/Pre -1		20%	20%	20%	20%	20%	20%
Percentage of improvement	EX 4		0%	0%	40%	40%	20%	0%
Percent of improvement in new sales	We only sale 25% of the improvement	25%	25%	25%	25%	25%	25%	25%
New units in year			0.0	0.0	19.3	19.3	9.7	0.0
New units			0.0	0.0	19.3	38.7	48.4	48.4

Calculation of inventory savings
Target DSI reduction		12	12	12	12	12	12	12
Percentage improvement	EX 4		0%	0%	40%	40%	20%	0%
DSI reduction in year			0	0	4.8	4.8	2.4	0
DSI reduction			0	0	4.8	9.6	12	12

Forecast with ERP			2000	2001	2002	2003	2004	2005
Units			978	978	997	1,016	1,026	1,026
Additional margin	EX 5		0.00%	0.00%	0.13%	0.25%	0.25%	0.25%
New margin			23.5%	23.5%	23.7%	23.8%	23.8%	23.8%

New price per unit	COGS per unit /(1-new margin)		189.87	189.87	190.19	190.49	190.49	190.49
Revenue	Units*price		185,625	185,625	189,621	193,606	195,449	195,449
COGS	Units*COGS per unit above		141,947	141,947	144,756	147,566	148,970	148,970
Margin	Revenue - COGS		43,678	43,678	44,865	46,040	46,478	46,478

DSI			67	67	62	57	55	55
Inventory	COGS*(DSI/365)		26056.02	26056.02	24668.07	23206.23	22447.60	22447.60

North

time line			1	2	3	4	5	6

West division

Forecast without ERP			2000	2001	2002	2003	2004	2005
Units	EX 3	North	1,443	1,443	1,443	1,443	1,443	1,443
Revenue	EX 3		280,901	280,901	280,901	280,901	280,901	280,901
COGS	Revenue - margin		251,083	251,083	251,083	251,083	251,083	251,083
Margin	EX 3		29,818	29,818	29,818	29,818	29,818	29,818

Price per unit	Revenue/units		194.64	194.64	194.64	194.64	194.64	194.64
COGS per unit	Cogs/units		174.0	174	174	174	174	174
Margin per unit	Margin/units		21	21	21	21	21	21

Percentage margin	Margin/revenue		10.6%	10.6%	10.6%	10.6%	10.6%	10.6%

DSI	EX 3		55	55	55	55	55	55
Inventory	COGS*(DSI/365)		37834	37834	37834	37834	37834	37834


Additional units from ERP

Pre-ERP availability	EX 3		83.2%	83.2%	83.2%	83.2%	83.2%	83.2%
Target availability		92%	92%	92%	92%	92%	92%	92%

Increase in availability	Target/Pre -1		11%	11%	11%	11%	11%	11%
Percentage of improvement	EX 4		0%	0%	0%	40%	40%	20%
Percent of improvement in new sales	We only sale 25% of the improvement	25%	25%	25%	25%	25%	25%	25%
New units in year			0.0	0.0	0.0	15.3	15.3	7.6
New units			0.0	0.0	0.0	15.3	30.5	38.2

Calculation of inventory savings
Target DSI reduction		12	12	12	12	12	12	12
Percentage improvement	EX 4		0%	0%	0%	40%	40%	20%
DSI reduction in year			0	0	0	4.8	4.8	2.4
DSI reduction			0	0	0	4.8	9.6	12

Forecast with ERP			2000	2001	2002	2003	2004	2005
Units			1,443	1,443	1,443	1,458	1,474	1,481
Additional margin	EX 5		0.00%	0.00%	0.00%	0.13%	0.25%	0.25%
New margin			10.6%	10.6%	10.6%	10.7%	10.9%	10.9%

New price per unit	COGS per unit /(1-new margin)		194.64	194.64	194.64	194.93	195.19	195.19
Revenue	Units*price		280,901	280,901	280,901	284,286	287,648	289,137
COGS	Units*COGS per unit above		251,083	251,083	251,083	253,739	256,394	257,722
Margin	Revenue - COGS		29,818	29,818	29,818	30,547	31,253	31,415

DSI			55	55	55	50	45	43
Inventory	COGS*(DSI/365)		37834.42	37834.42	37834.42	34897.76	31891.25	30361.80

2000

2001

2002

2003

2004

2005

EX 3

North

1,443

EX 3

280,901

Revenue - margin

251,083

EX 3

29,818

Revenue/units

194.64

Cogs/units

174.0

174

Margin/units

Margin/revenue

10.6%

EX 3

COGS*(DSI/365)

37834

EX 3

83.2%

92%

Target/Pre -1

11%

EX 4

40%

20%

We only sale 25% of the improvement

25%

0.0

15.3

7.6

0.0

15.3

30.5

38.2

EX 4

40%

20%

4.8

2.4

4.8

9.6

2000

2001

2002

2003

2004

2005

1,443

1,458

1,474

1,481

EX 5

0.00%

0.13%

0.25%

10.6%

10.7%

10.9%

COGS per unit /(1-new margin)

194.64

194.93

195.19

Units*price

280,901

284,286

287,648

289,137

Units*COGS per unit above

251,083

253,739

256,394

257,722

Revenue - COGS

29,818

30,547

31,253

31,415

COGS*(DSI/365)

37834.42

34897.76

31891.25

30361.80

Incremental Revenue

All Combined

Forecast without ERP	2000	2001	2002	2003	2004	2005
Units	6,108	6,108	6,108	6,108	6,108	6,108
Revenue	1,227,859	1,227,859	1,227,859	1,227,859	1,227,859	1,227,859
COGS	1,049,263	1,049,263	1,049,263	1,049,263	1,049,263	1,049,263
Margin	178,596	178,596	178,596	178,596	178,596	178,596

Inventory	148,697	148,697	148,697	148,697	148,697	148,697


Forecast with ERP	2000	2001	2002	2003	2004	2005
Units	6,144	6,214	6,299	6,343	6,368	6,375
Revenue	1,235,707	1,251,823	1,269,933	1,279,205	1,284,410	1,285,900
COGS	1,055,853	1,068,621	1,083,199	1,090,252	1,094,313	1,095,640
Margin	179,854	183,201	186,734	188,953	190,098	190,260

Inventory	146,012	139,045	130,616	124,398	120,633	119,103

Incremental	2000	2001	2002	2003	2004	2005
Units	36	106	191	235	260	267
Revenue	7,848	23,964	42,074	51,346	56,551	58,041
COGS	6,590	19,358	33,936	40,989	45,050	46,377
Margin	1,258	4,605	8,138	10,357	11,502	11,664

Inventory	-2,685	-9,652	-18,081	-24,299	-28,064	-29,594
Investment in inventory	-2,685	-6,967	-8,429	-6,218	-3,765	-1,529

CAPEX

		1999	2000	2001	2002	2003	2004	2005	2006	2007
Capital equipment		4300	8600	6900	4100
Software licenses		600	300
Capital expenditures		4900	8900	6900	4100

Depreciation
1999 assets	S\L 5 years		980	980	980	980	980
2000 assets	S\L 5 years			1780	1780	1780	1780	1780
2001 assets	S\L 5 years				1380	1380	1380	1380	1380
2002 assets	S\L 5 years					820	820	820	820	820
Incremental Depreciation			980	2760	4140	4960	4960	3980	2200	820

Operation Expense

	rate
		1999	2000	2001	2002	2003	2004	2005	2006	2007
Employees		50	50	50	50
Employees salary	45	2250	2250	2250	2250
Consultants		19	9	7	4
Consultants salary (annual)	184.8	3511.2	1663.2	1293.6	739.2
Task force			300	600	600	600	300
On going operational		600	1200	1800	2400	3000	3000	3000	3000	3000
License maintenance			100	200	300	400	400	400	400	400

Implementation Costs		6361.2	5513.2	6143.6	6289.2	4000	3700	3400	3400	3400
Other expense savings	EX 6		621	1749	2544	3300	3457	3503	3534	3566
Incremental Operating Expenses		6361.2	4892.2	4394.6	3745.2	700	243	-103	-134	-166

DCF


		0	1	2	3	4	5	6	7	8
Year		1999	2000	2001	2002	2003	2004	2005	2006	2007


Revenue									0	0	<-don't change this stuff
COGS									0	0
Operating Expense
Depreciation
EBIT
Taxes	40%
EBITAT

Cash flow adjustments
+ depreciation
- CAPX
- working capital investment

Cash Flow
Discount Factor	9%
Discounted cash flow
Terminal value	3%									0

Sum of discounted cash flow		0
PV(Terminal value)		0
NPV		0