Assuming that Ideko's market share after 2005 will increase each year, the required production volume for the following five years are shown below:

Sales Data	Growth/Year	2005	2006	2007	2008	2009	2010
Market Size (000 units)	5.25%	9,900.0	10,419.8	10,966.8	11,542.6	12,148.6	12,786.4
Market Share	0.65%	10.30%	10.95%	11.60%	12.25%	12.90%	13.55%
Production Volume (000 units)		1,019.7	1,141.0	1,272.1	1,414.0	1,567.2	1,732.6

Ideko's production plant will require an expansion in 2010

(when production volume will exceed the current level by 50%), and the cost of this expansion will be $15.3 million. Assuming the financing of the expansion will be delayed accordingly, calculate the projected interest payments and the amount of the projected interest tax shields (assuming that the interest rates on the term loans is 7.5%) through 2010.

Consider an income tax rate of 35%. Ideko's balance sheet for 2005 is shown here

Estimated 2005 Balance Sheet Data for

Ideko Corporation

Balance Sheet ($ 000)

Assets

Cash and Equivalents

6,164

Accounts Receivable

18,493

Inventories

6,165

Total Current Assets

30,822

Property, Plant, and Equipment

49,500

Goodwill

72,332

Total Assets

152,654

Liabilities and Stockholders' Equity

Accounts Payable

4,654

Debt

91,900

Total Liabilities

96,554

Stockholders' Equity

56,100

Total Liabilities and Equity

152,654