14. Under the assumption that KMS's market share will increase by 0.25% per year (and the investment and financing will be adjusted as described in Problem 13), you project the following depreciation: Year 2016 2017 2018 2019 2020 2021 Depreciation 5,492 5,443 7,398 7,459 7,513 7,561 Using this information, project net income through 2021 (that is, reproduce Table 18.8 under the new assumptions). 2016 2017 2018 2019 2020 2021 1 Year 2 Income Statement ($000s) 3 Sales 4 Costs Except Depreciation 5 EBITDA 6 Depreciation 7 EBIT 8 Interest Expense (net) 9 Pretax Income 10 Income Tax 11 Net Income 74,889 88,369 103,247 119,793 138,167 158,546 -58,413 -68,928 -80,533 -93,438 -107,770 -123,666 16,476 19,441 22,714 26,354 30,397 34,880 -5,492 -7,443 -7,443 -7,498 -7,549 -7,594 -7,634 10,984 11,998 15,216 18,806 22,803 27.246 -306 -306 -1,666 -1,666 -1,666 -1,666 10,678 11,692 13,550 17,140 21,137 25,580 -3,737 -4,092 -4,742 -5,999 -7,398 -8,953 6,941 7,600 8,807 11,141 13,739 16,627 Under the assumption that KMS's market share will increase by 0.25% per year, you determine that the plant will require an expansion in 2018. The expansion will cost $20 million. Assuming that the financing of the expansion will be delayed accordingly, calculate the projected interest payments and the amount of the projected interest tax shields (assuming that KMS still uses a 10-year bond and interest rates remain the same as in the chapter) through 2021. 14. Under the assumption that KMS's market share will increase by 0.25% per year (and the investment and financing will be adjusted as described in Problem 13), you project the following depreciation: Year 2016 2017 2018 2019 2020 2021 Depreciation 5,492 5,443 7,398 7,459 7,513 7,561 Using this information, project net income through 2021 (that is, reproduce Table 18.8 under the new assumptions). 2016 2017 2018 2019 2020 2021 1 Year 2 Income Statement ($000s) 3 Sales 4 Costs Except Depreciation 5 EBITDA 6 Depreciation 7 EBIT 8 Interest Expense (net) 9 Pretax Income 10 Income Tax 11 Net Income 74,889 88,369 103,247 119,793 138,167 158,546 -58,413 -68,928 -80,533 -93,438 -107,770 -123,666 16,476 19,441 22,714 26,354 30,397 34,880 -5,492 -7,443 -7,443 -7,498 -7,549 -7,594 -7,634 10,984 11,998 15,216 18,806 22,803 27.246 -306 -306 -1,666 -1,666 -1,666 -1,666 10,678 11,692 13,550 17,140 21,137 25,580 -3,737 -4,092 -4,742 -5,999 -7,398 -8,953 6,941 7,600 8,807 11,141 13,739 16,627 Under the assumption that KMS's market share will increase by 0.25% per year, you determine that the plant will require an expansion in 2018. The expansion will cost $20 million. Assuming that the financing of the expansion will be delayed accordingly, calculate the projected interest payments and the amount of the projected interest tax shields (assuming that KMS still uses a 10-year bond and interest rates remain the same as in the chapter) through 2021