BASE CASE OPTIMISTIC CASE PESSIMISTIC Product being produced Target Market Primary Sales Channel JACKETS Dallas/Ft Worth SAME AS BASE SAME AS BASE SAME AS BASE SAME AS BASE Retail Outlets / Malls SAME AS BASE SAME AS BASE Online Presence yes SAME AS BASE SAME AS BASE Price of the product (year 1) $18.35 SAME AS BASE 3.1% SAME AS BASE SAME AS BASE SAME AS BASE Annual growth rate on price Number of items sold (year 1) Annual growth rate on units sold Variable cost per unit Variable cost increase each year Fixed Costs Fixed costs increasing each year Depreciation Method (all CAPEX) Depreciation period (all CAPEX) Tax rate Initital Working Capital Add'tnl Working Capital One time (year 4) Initial Investmnet for Equipment (year 0) Suplemental Capital Required (year 3) Market Vale of All Equipment Year 10 Risk Free Rate (rfr) Beta (b) S&P 500 Avg Return (MR) Cost on Debt Tax Shield Eligible % of Equity in Cap Structure % of Debt in Cap Structure 438000 2.75% $5.75 4.25% $3,560,000 $522,000 490000 SAME AS BASE $4.90 SAME AS BASE $3,275,000 375000 SAME AS BASE $6.10 SAME AS BASE $4,100,000 SAME AS BASE $150,000 $8,900,000 $8,575,000 $1,500,000 $2,000,000 SAME AS BASE 3.25% SAME AS BASE straight line SAME AS BASE SAME AS BASE 5 years SAME AS BASE 21% SAME AS BASE $475,000 SAME AS BASE SAME AS BASE SAME AS BASE $615,000 SAME AS BASE $9,800,000 SAME AS BASE SAME AS BASE SAME AS BASE 3.50% SAME AS BASE SAME AS BASE 1.12 SAME AS BASE SAME AS BASE 12% SAME AS BASE SAME AS BASE 6% SAME AS BASE SAME AS BASE Yes SAME AS BASE SAME AS BASE 75% SAME AS BASE SAME AS BASE 25% SAME AS BASE SAME AS BASE