2008 2009

Revenue Projection:
Total Capacity (000's) 80,000,000
Capacity Utilization 60.0%
Unit Volume 48,000,000
Selling Price Per Unit - Growing at 2.0% 1.77
Revenue 84,960,000.00

Production Costs:
Raw Materials per unit - Growing at 1.0% 0.94
45,120,000.00
Manufacturing Overhead - Growing at 3.0% 3,600,000.00
Maintenance expense - Growing at 3.0% 2,250,000.00

Salaried Labor Cost:

Managers 4
Average Annual Fully Loaded Cost 3.5% 160,000
Total Salaried Labor Cost 640,000.00

Hourly Labor Cost:

Average Fully Loaded Hourly Cost 3.5% 20.00
Hours per year 2,000
Cost Per Hourly Employee 40,000
Number of Hourly Workers 450
Total Hourly Labor Cost (000) 18,000,000.00
Total Labor Cost 18,640,000.00

Selling, General & Administrative/Revenue 7.8% 7.8%

6,626,880.00

COGS 69,610,000.00

Working Capital Assumptions:

Days Sales Outstanding 47.6
Accounts Receivable 11,233,600.00
Days Sales Inventory 37.6
Inventory 7,270,377.78
Days Payable Outstanding 34.2
Accounts Payable 6,612,950.00
WC 11,891,027.78

Gross Profit 15,350,000.00

EBITDA 8,723,120.00

Depreciation Costs:
Facility Expansion 500,000.00
Manufacturing Equipment 2,000,000.00
Packaging Equipment 1,500,000.00
Total Depreciation 4,000,000.00

EBIT 4,723,120.00

Interest Expenses:
Facility Expansion 10,000,000.00 10,000,000.00
Manufacturing Equipment 20,000,000.00 20,000,000.00
Packaging Equipment 15,000,000.00 15,000,000.00
Total Investment: 45,000,000.00 45,000,000.00
Interest Expense 7.75% 3,487,500.00

EBT 1,235,620.00

Tax 40% 494,248.00

EBIT (1-T) 2,833,872.00
Net Income 741,372.00
Add back Depreciation 4,741,372.00
Change in working capital (12,817,000.00)

Net Cash Flows (45,000,000.00) (8,075,628.00)

WACC 9.38%

NPV (5,103,133.83)
IRR 7.6454%
add back dep 6,833,872.00
(45,000,000.00) (5,983,128.00)
(50,983,128.00)

NPV 8,104,087.47
IRR 12.0857%
Payback Period 6.59
 2010 2011 2012 2013 2014 2015

80,000,000 80,000,000 80,000,000 80,000,000 80,000,000 80,000,000

65.0% 70.0% 75.0% 80.0% 85.0% 85.0%
52,000,000 56,000,000 60,000,000 64,000,000 68,000,000 68,000,000
1.81 1.84 1.88 1.92 1.95 1.99
93,880,800.00 103,124,448.00 112,700,289.60 122,617,915.08 132,887,165.47 135,544,908.78

0.95 0.96 0.97 0.98 0.99 1.00

49,368,800.00 53,698,064.00 58,108,976.40 62,602,737.24 67,180,562.40 67,852,368.03
3,708,000.00 3,819,240.00 3,933,817.20 4,051,831.72 4,173,386.67 4,298,588.27
2,317,500.00 2,387,025.00 2,458,635.75 2,532,394.82 2,608,366.67 2,686,617.67

4 6 6 8 8 8
165,600.0 171,396.0 177,394.9 183,603.7 190,029.8 196,680.9
662,400.00 1,028,376.00 1,064,369.16 1,468,829.44 1,520,238.47 1,573,446.82

20.70 21.42 22.17 22.95 23.75 24.59

2,000 2,000 2,000 2,000 2,000 2,000
41,400 42,849 44,349 45,901 47,507 49,170
473 509 545 582 618 618
19,582,200.00 21,810,141.00 24,170,049.68 26,714,335.45 29,359,605.48 30,387,191.67
20,244,600.00 22,838,517.00 25,234,418.84 28,183,164.90 30,879,843.95 31,960,638.48

7.8% 7.8% 7.8% 7.8% 7.8% 7.8%

7,322,702.40 8,043,706.94 8,790,622.59 9,564,197.38 10,365,198.91 10,572,502.89

75,638,900.00 82,742,846.00 89,735,848.19 97,370,128.68 104,842,159.68 106,798,212.45

47.6 47.6 47.6 47.6 47.6 47.6

12,413,128.00 13,635,343.68 14,901,482.74 16,212,813.22 17,570,636.32 17,922,049.05
37.6 37.6 37.6 37.6 37.6 37.6
7,900,062.89 8,642,030.58 9,372,410.81 10,169,768.99 10,950,181.12 11,154,479.97
34.2 34.2 34.2 34.2 34.2 34.2
7,185,695.50 7,860,570.37 8,524,905.58 9,250,162.22 9,960,005.17 10,145,830.18
13,127,495.39 14,416,803.89 15,748,987.97 17,132,419.99 18,560,812.28 18,930,698.83

18,241,900.00 20,381,602.00 22,964,441.42 25,247,786.41 28,045,005.79 28,746,696.34

10,919,197.60 12,337,895.06 14,173,818.83 15,683,589.03 17,679,806.88 18,174,193.45

500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00

2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00
1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00
4,000,000.00 4,000,000.00 4,000,000.00 4,000,000.00 4,000,000.00 4,000,000.00

6,919,197.60 8,337,895.06 10,173,818.83 11,683,589.03 13,679,806.88 14,174,193.45

10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00

20,000,000.00 20,000,000.00 20,000,000.00 20,000,000.00 20,000,000.00 20,000,000.00
15,000,000.00 15,000,000.00 15,000,000.00 15,000,000.00 15,000,000.00 15,000,000.00
45,000,000.00 45,000,000.00 45,000,000.00 45,000,000.00 45,000,000.00 45,000,000.00
3,487,500.00 3,487,500.00 3,487,500.00 3,487,500.00 3,487,500.00 3,487,500.00

3,431,697.60 4,850,395.06 6,686,318.83 8,196,089.03 10,192,306.88 10,686,693.45

1,372,679.04 1,940,158.02 2,674,527.53 3,278,435.61 4,076,922.75 4,274,677.38

4,151,518.56 5,002,737.03 6,104,291.30 7,010,153.42 8,207,884.13 8,504,516.07
2,059,018.56 2,910,237.03 4,011,791.30 4,917,653.42 6,115,384.13 6,412,016.07
6,059,018.56 6,910,237.03 8,011,791.30 8,917,653.42 10,115,384.13 10,412,016.07
(1,236,467.61) (1,289,308.50) (1,332,184.08) (1,383,432.02) (1,428,392.29) (369,886.56)

4,822,550.95 5,620,928.53 6,679,607.22 7,534,221.40 8,686,991.84 10,042,129.51

8,151,518.56 9,002,737.03 10,104,291.30 11,010,153.42 12,207,884.13 12,504,516.07

6,915,050.95 7,713,428.53 8,772,107.22 9,626,721.40 10,779,491.84 12,134,629.51
(44,068,077.05) (36,354,648.52) (27,582,541.30) (17,955,819.90) (7,176,328.06) 4,958,301.45
 2016 2017 2018

80,000,000 80,000,000 80,000,000

85.0% 85.0% 85.0%
68,000,000 68,000,000 68,000,000
2.03 2.07 2.12
138,255,806.96 141,020,923.10 143,841,341.56

1.01 1.02 1.03

68,530,891.71 69,216,200.62 69,908,362.63
4,427,545.92 4,560,372.29 4,697,183.46
2,767,216.20 2,850,232.68 2,935,739.66

8 8 8
203,564.7 210,689.4 218,063.6
1,628,517.46 1,685,515.57 1,744,508.61

25.45 26.34 27.26

2,000 2,000 2,000
50,891 52,672 54,516
618 618 618
31,450,743.38 32,551,519.39 33,690,822.57
33,079,260.83 34,237,034.96 35,435,331.18

7.8% 7.8% 7.8%

10,783,952.94 10,999,632.00 11,219,624.64

108,804,914.65 110,863,840.56 112,976,616.94

47.6 47.6 47.6

18,280,490.03 18,646,099.83 19,019,021.83
37.6 37.6 37.6
11,364,068.86 11,579,112.24 11,799,779.99
34.2 34.2 34.2
10,336,466.89 10,532,064.85 10,732,778.61
19,308,092.00 19,693,147.21 8,286,243.22

29,450,892.31 30,157,082.54 30,864,724.62

18,666,939.36 19,157,450.53 19,645,099.98

500,000.00 500,000.00 500,000.00

2,000,000.00 2,000,000.00 2,000,000.00
1,500,000.00 1,500,000.00 1,500,000.00
4,000,000.00 4,000,000.00 4,000,000.00

14,666,939.36 15,157,450.53 15,645,099.98

10,000,000.00 10,000,000.00 10,000,000.00

20,000,000.00 20,000,000.00 20,000,000.00
15,000,000.00 15,000,000.00 15,000,000.00
45,000,000.00 45,000,000.00 45,000,000.00
3,487,500.00 3,487,500.00 3,487,500.00

11,179,439.36 11,669,950.53 12,157,599.98

4,471,775.75 4,667,980.21 4,863,039.99

8,800,163.62 9,094,470.32 9,387,059.99
6,707,663.62 7,001,970.32 7,294,559.99
10,707,663.62 11,001,970.32 11,294,559.99
(377,393.17) (385,055.21) 11,406,904.00

10,330,270.45 10,616,915.11 22,701,463.98

12,800,163.62 13,094,470.32 13,387,059.99

12,422,770.45 12,709,415.11 24,793,963.98
17,381,071.90 30,090,487.01 54,884,450.99
Channel 2003 2004 2005 2006 2007 2007
TCorp's
Mass 170 193 220 247 268
merchants 39% 5%
12% 6%
Grocery 91 92 92 92 94 14%
Club 136 141 149 159 167 25%
Drug 55 60 66 73 80 12%
Dollar 22 24 26 29 32 5%
All others 3
31 33 34 37 40 6%
Total 505 543 587 637 681 100%
25%

TCorp'
Operatin 2003 2004 2005 2006 2007 $800.00
g
Results: $700.00
Revenue $503.40 $543.70 $587.20 $636.10 $680.70 $600.00
Gross 98.2 111.4 91 122.7 122.5 $500.00
Profit

In millions
Net $28.90 $32.80 $20.00 $36.00 $38.50 $400.00
Income
$300.00
$200.00
$100.00
$0.00
2003 2
 TCorp's Sales breakup - 2007
5%
12% 6%
39% Mass merchants
Grocery
Club
Drug
Dollar
All others3
25%
14%

TCorp's Financial Position

$800.00
$700.00
$600.00
$500.00
In millions

$400.00
$300.00
$200.00
$100.00
$0.00
2003 2004 2005 2006 2007