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Forecasted price n Unit
        Demand level    Weak    Average    Strong
        Probability    25%    45%    30%
        Price per refrigerator    $1,500    $1,575    $1,600
        Units sold per year    40,000    42,500    43,000
        Forecasted
        Annual price per refrigerator    $1,563.75
        Units sold per year    42,025
Depreciation
        Year 0    Assets value    Depreciation rate (MACRS)    Depreciation    Book Value
        0        0    0    $14,000,000.00
        1    $14,000,000.00    14.29%    $2,000,600.00    $11,999,400.00
        2    $11,999,400.00    24.49%    $2,938,653.06    $9,060,746.94
        3    $9,060,746.94    17.49%    $1,584,724.64    $7,476,022.30
        4    $7,476,022.30    12.49%    $933,755.19    $6,542,267.11
        5    $6,542,267.11    8.93%    $584,224.45    $5,958,042.66
        6    $5,958,042.66    8.92%    $531,457.41    $5,426,585.26
        7    $5,426,585.26    8.93%    $484,594.06    $4,941,991.19
        8    $4,941,991.19    4.46%    $220,412.81    $4,721,578.39
Cost of capital
        Cost of debt
        Interest rate on bond    5.25%
        Tax rate    35%
        Post tax cost of debt    3.41%
        Cost of Equity
        Risk free rate of return    3%
        Market risk premium    6%
        Beta    1.3
        Cost of equity    10.80%
        Debt Equity ratio    0.5
        Weight of Equity    0.67
        Weight of Debt    0.33
        Weighted average cost
        of capital (WACC)    8.34%
Cash flow 1
        When CM - 004 compressor is used
            Year 0    Year 1    Year 2    Year 3    Year 4    Year 5    Year 6    Year 7    Year 8
        Initial Investment    ($14,000,000)
        Add: Initial Working Capital    ($6,571,659)
        Units sold per year        42,025    42,025    42,025    42,025    42,025    42,025    42,025    42,025
        Price per refrigerator        $1,563.75    $1,563.75    $1,563.75    $1,563.75    $1,563.75    $1,563.75    $1,563.75    $1,563.75
        Reveue per year        $65,716,593.75    $65,716,593.75    $65,716,593.75    $65,716,593.75    $65,716,593.75    $65,716,593.75    $65,716,593.75    $65,716,593.75
        Inflation adjusted revenue per year        $67,688,091.56    $67,688,091.56    $67,688,091.56    $67,688,091.56    $67,688,091.56    $67,688,091.56    $67,688,091.56    $67,688,091.56
        Labor cost per refrigerator        $250    $250    $250    $250    $250    $250    $250    $250
        Less: Labor cost per year        ($10,506,250)    ($10,506,250)    ($10,506,250)    ($10,506,250)    ($10,506,250)    ($10,506,250)    ($10,506,250)    ($10,506,250)
        Parts cost per refrigerator        $300    $300    $300    $300    $300    $300    $300    $300
        Less: Parts cost per year        ($12,607,500)    ($12,607,500)    ($12,607,500)    ($12,607,500)    ($12,607,500)    ($12,607,500)    ($12,607,500)    ($12,607,500)
        Compressor cost per...