Project 2 5 7 8 10 11 Truck Fleet Expanded Multi-Plant Updated Expansion New Dijon Plant Snack Foods Nuremberg Plant Rollout Upgrade Southward Expansion Eastward Nondairy Yogurt Inventory-Control Strategic Expansion Line System Acquisition Fixed capital expenditure 30.00 37.50 15.00 22.50 21.00 0.00 0.00 22.50 22.50 45.00 Net working capital 3.00 7.50 0.00 4.50 0.00 30.00 30.00 4.50 0.00 15.00 Total investment 33.00 45.00 15.00 27.00 21.00 30.00 30.00 27.00 22.50 50.00 (33.00) (45.00) (15.00) (27.00) (21.00) (30.00) (30.00) (27.00) (22.50) (60.00) Year cted Free Cash Flows .. -17.10 -45.00 -15.00 -9.00 -21.00 30.00 -30.00 -27.00 -18.00 -25.00 -11.85 3.25 1.75 -9.00 4.00 5.25 4.40 4.75 8.10 -30.00 4.00 7.25 2.25 -9.00 4.00 5.75 5.00 5.75 8.10 7.00 5.00 8.25 2.63 4.25 4.00 6.50 5.50 6.50 7.40 13.00 5.75 8.75 3.00 4.40 4.00 7.25 6.50 7.00 16.00 6.50 9.00 3.00 5.75 4.00 8.00 7.25 7.00 19.00 7.50 9.25 3.00 6.50 4.00 8.75 7.75 7.00 22.00 10.25 9.50 2.20 7.25 4.00 9.25 8.50 7.00 25.00 7.50 2.20 7.75 9.75 9.50 7.00 28.00 7.75 2.20 8.25 10.00 10.00 7.00 30.00 10 8.00 2.20 9.50 11.00 10.50 7.00 30.00 Undiscounted sum 10.05 $3.50 9.43 26.65 7.00 51.50 44.90 39.00 5.60 185.00 Payback (years) 6 6 6 7 6 5 5 5 3 5 Internal rate of return 6.8% 10.8% 9.9% 12.5% 7.8% 20.3% 17.6% 19.3% 15.1% 26.5% Net Present Value Notes: 1. The effluent treatment program is not included in this exhibit. 2. The total investment reflects both the initial and subsequent investment requirements. For example, the EUR33 million investment requirement for Project 1, the truck fleet expansion, includes EUR17.1 million spent in the initial year and EUR15.9 milion spent in the following year. 3. Free cash flow is defined as incremental profit or cost savings after taxes + depreciation - investment in fixed assets and working capital 4. Franchisees in the southward or eastward expansion would gradually take over the burden of carrying receivables and inventory. 3. For the strategic acquisition, EUR25 million would be spent in the first year, EUR30 million in the second, and EURS million in the third