Fosbeck's Automation Project Given MACRS Schedule Investment cost (today) ($400.00)year 1 33% Project life $5.00 year 2 45% Annual labor costs savings $50.00 year 3 15%

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Fosbeck's Automation Project Given MACRS Schedule Investment cost (today) ($400.00)year 1 33% Project life $5.00 year 2 45% Annual labor costs savings $50.00 year 3 15% Annual waste disposal cost savings $10.00 year 4 7% Annual Byproduct sales $80.00 Required rate of return $0.12 Tax rate 35% Solution Basic Analysis (All numbers in $ Mil) Year Cash flow estimation 0 1 2 3 4 5 Investment ($400.00) Annual labor costs savings Annual waste disposal cost savings Annual Byproduct sales EBITDA Less:Depreciation Additional EBIT Less:Taxes NOPAT Plus:Depreciation FCF NPV IRR Analysis Scenario Analysis Sales and NPV numbers are in $ Mil Scenario probability Byproduct Sales NPV IRR Base Byproduct sales decrease by 10% Byproduct sales decrease by 30% Byproduct sales decrease by 50% Expected NPV Breakeven Breakeven byproduct sales dWPz

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Fosbeck's Automation Project Given MACRS Schedule Investment cost (today) ($400.00)year 1 33% Project life $5.00 year 2 45% Annual labor costs savings $50.00 year 3 15% Annual waste disposal cost savings $10.00 year 4 7% Annual Byproduct sales $80.00 Required rate of return $0.12 Tax rate 35% Solution Basic Analysis (All numbers in $ Mil) Year Cash flow estimation 0 1 2 3 4 5 Investment ($400.00) Annual labor costs savings Annual waste disposal cost savings Annual Byproduct sales EBITDA Less:Depreciation Additional EBIT Less:Taxes NOPAT Plus:Depreciation FCF NPV IRR Analysis Scenario Analysis Sales and NPV numbers are in $ Mil Scenario probability Byproduct Sales NPV IRR Base Byproduct sales decrease by 10% Byproduct sales decrease by 30% Byproduct sales decrease by 50% Expected NPV Breakeven Breakeven byproduct sales dWPz

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