B&K Distributors-ROI Model-Summary Page (US$ in thousands) Revenue Upside Baseline Incremental Net income Upside Baseline Incremental Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 3,400 4,643 5,619 6,487 7,293 7,886 3,400 3,608 3,828 4,061 4,308 4,569 1,035 1,791 2,426 2,986 3,316 411 583 734 878 1,003 1,121 411 436 463 491 521 552 147 272 387 482 569 Incremental investment program (after tax) Upfront costs Ongoing costs Total Total (after tax) (387) (283) (291) (300) (309) (319) (387) (283) (291) (300) (309) (319) (240) (175) (181) (186) (192) (197) Total incremental cash flow (240) (28) 91 201 291 371 (268) (177) 24 314 686 Five-year IRR 40.6% Net present value 346 Discount rate 12% Tax rate 38% Support cost inflation rate 3% Three-year IRR 3.3% Total incremental cash flow (240) (28) 91 201 291 371 Cumulative cash flows (268) (177) 24 314 686 Payback