Question: Choose two variables and conduct a sensitivity analysis using these numbers. Exhibit 14a B&K Distributors - ROI Model - Summary Page (US $ thousands) Year

Choose two variables and conduct a sensitivity analysis using these numbers.

Exhibit 14a B&K Distributors - ROI Model - Summary Page (US $ thousands) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Revenue Upside 3,400 4,643 5,619 6,487 7,293 7,886 Baseline 3,400 3,608 3,828 4,061 4,308 4,569 Incremental 0 1,035 1,791 2,426 2,986 3,316 Net income Upside 411 583 734 878 1,003 1,121 Baseline 411 436 463 491 521 552 Incremental 147 272 387 482 569 Incremental Investment Program (after tax) Upfront Costs (387) Ongoing Costs (283) (291) (300) (309) (319) Total (387) (283) (291) (300) (309) (319) Total (after tax) (240) (175) (181) (186) (192) (197) Total Incremental Cash Flow (240) (28) 91 201 291 371 (268) (177) 24 314 686 5 yr Internal Rate of Return 40.6% Net Present Value 346 Discount Rate 12% Tax Rate 38% Support Cost Inflation Rate 3% 3 YR IRR 3.3% Total Incremental Cash Flow (240) (28) 91 201 291 371 Cummulative Cash Flows (268) (177) 24 314 686

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