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Go Through The Entire Workbook, Sheet By Sheet and Enter Data Using The Following Rules:

- You Must Enter Data In The Light Green Boxes

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- The Fields With No Shading Are Automatically Calculated - DO NOT ENTER DATA!

Select Boxes with a Triangle in the corner


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contents to be entered into the box, or
describing the meaning of the box.

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Application Description

Financial Inputs
Automation System Investment $125,000
(Total system price including all automation, peripheral
equipment, controls, engineering, build, set-up & run-off , and
installation supervision at end users)

Plant Startup Expenses (if not included in automation system investment)


Installation $500
Automation Systems Training $2,000
Internal Labor for Startup and Debug $3,000
Production Support/Service Contracts $0

Combined State and Federal Income Tax Rate 37.3%

Corporate Hurdle Rate for Investment Decisions 15.0%

Capital Evaluation Duration In Years (Enter "5" or "7") 5

Corporate Discount Factor / Weighted Average Cost of Capital 5.0%

Corporate Payback Period (Months) for this Application 24

Proposal 10xxxx Page 1 of 9


03/26/2011 - 08:04:12
The information contained herein is proprietary and confidential, and should not be shared outside "nickname"
Application Description

Labor Savings
Current Number of Laborers per Shift: 1.0
Operators 1.0
Maintenance
Technicians
Material Handlers

Automation System Number of Laborers per Shift: 0.1


Operators
Maintenance
Technicians 0.1
Material Handlers

Number of Shifts: 2.0

Annual Hours Per Laborer 2,000


Production Hours Per Day 8.0
Production Days Per Week 5.0
Production Weeks Per Year 50.0

Current Annual Labor Hours: 4,000


Automation System Annual Labor Hours: 400
Annual Labor Savings (Hours): 3,600

Burdened Hourly Rate for Laborers:


Operators $14.00
Maintenance $20.00
Technicians $26.00
Material Handlers $18.00

Current Annual Labor Cost: $56,000


Automation System Annual Labor Cost: $10,400
Annual Labor Savings (Dollars): $45,600

Annual Lost Time and Disability Savings: $2,280


Annual Average Percentage Rate: 5%

Proposal 10xxxx Page 2 of 9 03/26/2011 - 08:04:12


The information contained herein is proprietary and confidential, and should not be shared outside "nickname"
Application Description

Preventive Maintenance (PM) Labor Cost

Total Additional Number of PM Personnel Assigned: 0.2

Burdened Hourly Rate for PM: $20.00

Automation PM Man-Hours per Year 96

Annual PM Labor Savings/(Cost): ($1,920)

Proposal 10xxxx Page 3 of 9


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The information contained herein is proprietary and confidential, and should not be shared outside "nickname"
Application Description

Production Increase
Current Systems Annual Production 3,206,400
Production Rate Per Hour 960.0
Total Available Production Hours Per Year 4,000
Less Scheduled Downtime per shift (lunches, breaks, etc. - hrs) 1.00 (500)
Less Annual Unscheduled Downtime (avg. percentage) 4.0% (160)
Less Annual Change-Over (hours) 0
Net Annual Production Hours 3,340

Automation Systems Annual Production 3,321,600


Production Rate Per Hour 960.0
Total Available Production Hours Per Year 4,000
Less Daily Scheduled Downtime (lunches, breaks, etc. - hrs) 1.00 (500)
Less Annual Unscheduled Downtime (avg. percentage) 1.0% (40)
Less Annual Change-Over (hours) 0
Net Annual Production Hours 3,460

Increased Annual Production 115,200


Profit Per Unit $1.00

Increased Annual Profit $115,200

Proposal 10xxxx Page 4 of 9


03/26/2011 - 08:04:13
The information contained herein is proprietary and confidential, and should not be shared outside "nickname"
Application Description

Scrap Reduction Savings


Current Systems Annual Scrap 167
Scrap Rate 5.0%
Net Annual Production Hours (Current System) 3,340

Automation Systems Annual Production 35


Scrap Rate 1.0%
Net Annual Production Hours (Automation System) 3,460

Increased Annual Production 132


Profit Per Unit $1.00

Scrap Reduction Savings $132

Proposal 10xxxx Page 5 of 9


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The information contained herein is proprietary and confidential, and should not be shared outside "nickname"
Application Description

Miscellaneous Saving
This Sheet To Be Used For Unique Savings Opportunities Specific To Your Application

Miscellaneous Saving #1 $0

Miscellaneous Saving #1 $0

Miscellaneous Saving #1 $0

Total Miscellaneous Savings $0

Proposal 10xxxx Page 6 of 9


03/26/2011 - 08:04:13
The information contained herein is proprietary and confidential, and should not be shared outside "nickname"
Application Description

Annual Savings Summary

Operator Labor Savings : $45,600

Lost Time and Disability Savings : $2,280

Workers Compensation Premiums ($1.3 per $100 of payroll) $593

System Preventive Maintenance: ($1,920)

Production Increase Value: $115,200

Scrap Reduction Savings: $132

Miscellaneous Savings: $0

Total Annual Profit Increase: $161,885

Proposal 10xxxx Page 7 of 9 03/26/2011 - 08:04:13


The information contained herein is proprietary and confidential, and should not be shared outside "nickname"
Application Description

Investment Summary
Total Initial Investment: $130,500
Total Annual Profit Increase (Before Income Taxes): $161,885
Weighted Average Cost of Capital / Discount Factor: 5.0%
Corporate Hurdle Rate: 15.0%

5 Year IRR Generated From Project: 74.7%


(True Interest Return Generated by the Project)
(If IRR > Hurdle Rate, Accept the Project)
(If IRR < Hurdle Rate, Reject the Project)

5 Year NPV: $346,397


(Present Value of Net Annual Cash Flows)
(IF NPV > $0, Accept the Project)
(IF NPV < $0, Reject the Project)

Payback In Months (Before Income Taxes): 9.7

Proposal #10xxxx Page 8 of 9 03/26/2011 - 08:04:13


The information contained herein is proprietary and confidential, and should not be shared outside "nickname"
Application Description

Financial Analysis
Today (Year 0) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
5 Year (-) (130,500) 0
7 Year (-) 0 0
Total Equipment Investment (130,500) 0 0 0 0 0 0 0
Cash Flow Data:
Operator Labor Savings 45,600 45,600 45,600 45,600 45,600 45,600 45,600
Annual lost time and disability savings 2,280 2,280 2,280 2,280 2,280 2,280 2,280
Workers Comp Premiums 593 593 593 593 593 593 593
System Preventive Maintenance (1,920) (1,920) (1,920) (1,920) (1,920) (1,920) (1,920)
Increased Annual Profit (from Production Increase) 115,200 115,200 115,200 115,200 115,200 115,200 115,200
Scrap Savings 132 132 132 132 132 132 132
Miscellaneous Savings 0 0 0 0 0 0 0
Depreciation (MACRS 7 on purchases made after 9/10/01 and Before 9/11/04) (52,204) (22,372) (15,977) (11,410) (8,158) (8,148) (8,158)
Net Pre-Tax Profit: 109,681 139,513 145,908 150,475 153,727 153,736 153,727

Income Taxes @ 37.3% (40,856) (51,969) (54,351) (56,052) (57,263) (57,267) (57,263)
Add Depreciation (+) 52,204 22,372 15,977 11,410 8,158 8,148 8,158
Net Annual Cash Flow (after tax): (130,500) 121,029 109,916 107,534 105,833 104,621 104,618 104,621

Cumulative Cash Flow: (130,500) (9,471) 100,445 207,979 313,812 418,433 523,051 627,673
Weighted Avg Cost of Capital @ 5.0% 1.00000 0.95238 0.90703 0.86384 0.82270 0.78353 0.74622 0.71068
Present Value of Annual Cash Flows(130,500) 115,265 99,697 92,892 87,069 81,974 78,068 74,352
Cumulative Discount Cash Flow (130,500) (15,235) 84,463 177,355 264,424 346,397 424,465 498,817

Time Period NPV IRR


5 Years $346,397 74.7%
7 Years $498,817 77.5%
1.09 Years After Tax Payback

Proposal 10xxx Page 9 of 9


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The information contained herein is proprietary and confidential, and should not be shared outside "nickname"
Application Description

Financial Analysis
(continued)

Payback 1.00 0.00 0.00 0.00 0.00 0.00 0.00


Calculation Detail: 0.0000 0.09 0.00 0.00 0.00 0.00 0.00

Formula Checks: 0
(Should = 0 ) 0
7,332
7,712

IRR 7YR Err:523 0.7747


GUESS 0.50 0.50

Depreciation Rates: 0.4 0.17 0.12 0.09 0.06 0.06 0.06 (0.0312)
(Straight-Line - Change if Applicable)

Formula
Checker
Should = 0
Deprec. Deprec. Deprec. Deprec. Deprec. Deprec. Deprec.
Investment Year 1 (52,204) (22,372) (15,977) (11,410) (8,158) (8,148) (8,158) 4,074.2100
Investment Year 2 0 0 0 0 0 0 0.0000
Investment Year 3 0 0 0 0 0 0.0000
Investment Year 4 0 0 0 0 0.0000
Investment Year 5 0 0 0 0.0000
Investment Year 6 0 0 0.0000
Investment Year 7 0 0.0000

Total Depreciation (52,204) (22,372) (15,977) (11,410) (8,158) (8,148) (8,158)

Inflation Factors
Enter Rate 0.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Proposal 10xxx Page 9 of 9


03/26/2011 - 08:04:14
The information contained herein is proprietary and confidential, and should not be shared outside "nickname"