Assuming that Idekos market share will increase by 0.5% per year, the required production capacities for the following five years are shown below:
	Sales Data	Growth/Year	2005	2006	2007	2008	2009	2010
	Market size (000 units)	5%	10,000	10,500	11,025	11,576	12,155	12,763
	Market share	0.5%	10.00%	10.50%	11.00%	11.50%	12.00%	12.50%
	Production volume		1,000	1,103	1,213	1,331	1,459	1,595

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 $15.0 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 rate on the term loans is 6.8% and the corporate tax rate is 35%) through 2010. Ideko's balance sheet for 2005 is shown below:

Balance Sheet ($000)

Assets

Cash and Cash Equivalents

6,164

Accounts Receivable

18,493

Inventories

6,165

Total Current Assets

30,822

Property, Plant & Equipment

49,500

Goodwill

72,332

Total Assets

152,654

Liabilities

Accounts Payable

4,654

Debt

100,000

Total Liabilities

104,654

Stockholders' Equity

48,000

Total Liabilities & Stockholders' Equity

152,654

Interest rate on loan

6.80%

Corporate tax rate

35%

Cost of the expansion ($000)

15,000

Debt and Interest ($000)

2005

2006

2007

2008

2009

2010

Outstanding debt

Interest on the term loan, 6.8%

Interest tax shield

1.	In cell E34, by using relative and absolute cell references, calculate the outstanding debt for the year 2005 (1 pt.). Copy cell E34 and paste it onto cells F34:I34 (1 pt.).
2.	In cell J34, by using cell references, calculate the outstanding debt for the year 2010 (1 pt.).
3.	In cell E35, by using relative and absolute cell references, calculate the interest on the term loan for the year 2005 (1 pt.). Copy cell E35 and paste it onto cells F35:J35 (1 pt.). Note that the interest on the new loan will not be applied until the following year.
4.	In cell E36, by using relative and absolute cell references, calculate the interest tax shield for the year 2005 (1 pt.). Copy cell E36 and paste it onto cells F36:J36 (1 pt.).