What is the capital expenditure and depreciation for automated and non-automated? Effective operating days per year 360 Used to adjust for maintenance and breakdowns Tax rate 30% Tax is paid in the year of income Discount rate After Tax 10% Applies to non-automated and automated options Total Locomotives 6 Information on Locomotives (per locomotive) Initial outlay ($) 2,500,000 Mine uses MD4400AC trains Life of locomotive (years) 15 Operative life is shorter than average due to continued operation of trains and load requirements Working capital ($) 500,000 Fuel, spare parts and related materials Additional capital outlay to rail line ($) 35,000,000 Sensors and related materials, depreciated straight line over life of mine Salvage of additional capital outlay to rail line ($) 0 Additional capital outlay to locomotive ($, per locomotive) 250,000 Sensors and related materials required for all new locomotives, depreciated straight line over life of locomotive Salvage of additional capital outlay to locomotives ($, per locomotive) 0 Additional working capital ($) 1,000,000 Total across rail line and all trains Fuel efficiency usage adjustment 93% Automation reduces fuel usage as locomotives operate more efficiently, e.g. reduces cost by 7% Maintenance cost adjustment 95% Automation reduces maintenance costs through less wear and tear, and breakdowns of locomotives, e.g. reduces cost by 5%