Information required to evaluate project options, and cost of capital and funding options.

Three projects being considered. Projects A1 and A2 are mutually exclusive (based on equipment that would be supplied from two different sources) and Project B which is independent of the A projects. Following are the projected cash flows of the projects:

Year Project A1 Project A2 Project B

0 $(20,000,000) $(22,500,000) $(52,000,000)

1 10,000,000 10,000,000 20,000,000

2 9,000,000 12,000,000 20,000,000

3 12,000,000 7,000,000 20,000,000

4 -- 5,000,000 20,000,000