Under the assumption that Ideko's market share will increase by 0.40 percent per year, you project the following investment and depreciation:

Using this informationand the attached.

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Assume the corporate tax rate is 35 % Ideko's income statement for 2005project net income through 2010

Fixed Assets and Capital Investment ($ 000)
	2005	2006	2007	2008	2009	2010
New Investment	4,850	4,850	4,850	4,850	4,850	119,350
Depreciation	(5,520)	(5,453)	(5,393)	(5,338)	(5,290)	(6,696)

Estimated 2005 Income Statement Income Statement ($ 000) Sales Cost of Goods Sold Raw Materials Direct Labor Costs Gross Profit Sales and Marketing Administrative EBITDA Depreciation EBIT Interest Expense (net) Pretax Income Income Tax Net Income 72685 (15,999) (17,228) 39458 (10,794) (13,003) 15661 (5,520) 10141 (73) 10068 (3,524) 6544 Growth Sales Data Market Size (000 units) Market Share Average Sales Price ($/unit) Cost of Goods Data Raw Materials ($/unit) Direct Labor Costs ($/unit) Operating Expense Data Sales and Marketing (% sales) Administrative (% sales) Interest on Term Loan ($ 000) 4.90% 0.40% 2.00% 2005 2006 2007 2008 2009 9700 10175 10674 11197 11746 9.90% 10.30% 10.70% 11.10% 11.50% 75.69 77.2 78.75 80.32 81.93 1.00% 4.10% 16.66 17.94 14.85 17.89 (73) 16.83 18.68 16.99 19.44 17.16 20.24 17.34 21.07 16.3 17.75 19.2 19.65 14.89 14.89 13.89 12.89 (7,001) (7,001) (7,001) (7,001) 2010 12322 11.90% 83.57 17.51 21.93 19.65 12.89 (7,001)