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?

Exhibit 2B Wave Implementation Schedule
	West	South	Central	North
Start Date:	MAY 1999	MAY 2000	MAR 2001	JAN 2002
End Date:	APR 2000	FEB 2001	DEC 2001	AUG 2002

Exhibit 3 1997 Data for Whirlpool Europe
Wave	DSI	Product Availability	Units Sold	Revenue (000s US$)	Margin (000s US$)
West	45	73.5%	2,271,139	477,784	58,859
South	51	83.1%	1,415,949	283,549	46,241
Central	67	76.8%	977,665	185,625	43,678
North	55	83.2%	1,443,156	280,901	29,818

Exhibit 4 Improvements in DSI and Availability by Year and Wave
	Improvements by Year by Wave
Wave	2000	2001	2002	2003	2004	2005
West	25%	40%	35%
South		35%	40%	25%
Central			40%	40%	20%
North				40%	40%	20%

Exhibit 5 Margin Improvements by Year by Wave
	Cumulative Margin Improvements by Year by Wave
Wave	2000	2001	2002	2003	2004	2005
West	0.06%	0.25%	0.25%	0.25%	0.25%	0.25%
South		0.10%	0.25%	0.25%	0.25%	0.25%
Central			0.13%	0.25%	0.25%	0.25%
North				0.13%	0.25%	0.25%

Exhibit 6 Forecasted Other Expense Savings by Year (000s US$)
	2000	2001	2002	2003	2004	2005	2006	2007
Order Desk Headcount	0	190	411	442	474	506	537	569
Finance Headcount	81	135	216	324	405	405	405	405
Warehouse Space	18	72	155	230	274	288	288	288
Bad Debt Expense	102	512	922	1,024	1,024	1,024	1,024	1,024
Information Systems	420	840	840	1,280	1,280	1,280	1,280	1,280
	621	1,749	2,544	3,300	3,457	3,503	3,534	3,566

West

		1	2	3	4	5	6
		2000	2001	2002	2003	2004	2005
EX 3	West	2,271	2,271	2,271	2,271	2,271	2,271
EX 3		477,784	477,784	477,784	477,784	477,784	477,784
Revenue - margin		418,925	418,925	418,925	418,925	418,925	418,925
EX 3		58,859	58,859	58,859	58,859	58,859	58,859
Revenue/units		210.37	210.37	210.37	210.37	210.37	210.37
Cogs/units		184.5	184	184	184	184	184
Margin/units		26	26	26	26	26	26
Margin/revenue		12.3%	12.3%	12.3%	12.3%	12.3%	12.3%
EX 3		45	45	45	45	45	45
COGS*(DSI/365)		51648	51648	51648	51648	51648	51648

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

Incremental Revenue

time line			1	2	3	4	5	6
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

Operating 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