THE SOUNDS ALIVE COMPANY

GROWTH ASSUMPTIONS

Gross revenue 9%
Labor cost 4%
material cost 6%
overhead cost 3%
Tax rate 32%
SG&A cost 11%

2004 2005 2006 2007 Total

Gross Revenues $ 6,000.00 $6,540.00 $7,128.60 $7,770.17 $27,438.77
Less R&A 2.2% 2.2% 2.2% 2.2%
Net Revenue $ 5,868.00 $6,396.12 $6,971.77 $7,599.23 $26,835.12
Less Labor $ 995.10 $1,034.90 $1,076.30 $1,119.35 $ 4,225.66
Materials $ 945.35 $1,002.07 $1,062.20 $1,125.93 $ 4,135.54
overhead $ 1,506.12 $1,551.30 $1,597.84 $1,645.78 $ 6,301.04
cost of goods $ 3,446.57 $3,588.28 $3,736.34 $3,891.06 $14,662.24
Gross Profit $ 2,553.43 $2,951.72 $3,392.26 $3,879.12 $12,776.53
SG&A 11% 11% 11% 11%
Profit before tax $ 1,907.95 $2,248.15 $2,625.37 $3,043.20 9824.666834
tax rate 32% 32% 32% 32%
profit after tax $ 1,297.41 $1,528.74 $1,785.25 $2,069.38 6680.773447
interest rate 5.4%
NPV $5,808.50