Use the information in the case to construct 2 sets

Page 14 9BOON016 Exhibit 8 CASH FLOW ANALYSIS OF THE PROPOSED CHANGCHUN JOINT VENTURE (JOINT VENTURE) (US$000) 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Net Income (1,975) (444) 1,758 1,662 2,910 3,074 3,664 4,332 4,690 5,437 6,236 7,077 Depreciation (+) 896 2,069 2,838 2,843 295 3,362 4,018 4,235 4,444 4,506 4,679 4,266 Amortization (+) 78 551 849 890 3,578 910 729 773 728 735 815 919 Bottle Deposit (+) 746 1,252 1.097 528 644 679 455 568 515 524 533 600 Capital Expenditure (-) (11,698) (5,778) (11,086) 5,581) (1,325) (5,375) (7,838) (3,426) (4,823) (5,003) (4,443) 4,523) (5,280) Working Capital (-) (732) (1,558) (1,538) (367 (622) (684) (1,317) (1,258) (1,491) (1,543) (1,645) (1,725) Net Cash Flow (11,698) (6,765) (9,216) (577) 4,231 1,430 497) 4, 123 3,828 3,883 5,216 6,095 5,858 55,913 Terminal Value (11,698) (6,765) (9,216) (577) 4,231 1,430 (497) 4,123 3,828 3,883 5,216 6.095 61,771 Net Cash Flow with TV Discount Rate 16% Without TV With TV NPV $ (12,868.2) $ (4,748.1) IRR 2.4% 12.9%Page 15 9BOON016 Exhibit 9 CASH FLOW ANALYSIS OF THE PROPOSED CHANGCHUN JOINT VENTURE (PEPSICO) (US$000) 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Net Cash Flow with TV PepsiCo's Share of (11,698) (6,765) (9,216) (577) 4,231 1,430 (497) 4,123 3,828 3,883 5,216 6,095 61,771 Joint Venture Cash Flow (6,726) (3,890) (5,299) (332) 2,433 822 (286) 2,371 2,201 2.233 2.999 3,505 35,518 COGS 3,039 7,894 12.923 13,961 15,995 18,272 22,879 27,561 33,334 39,292 45,476 51,731 Joint Venture Purchase 1,520 3,947 6,462 6,981 7.998 9, 136 11,440 13,781 16,667 19.646 22,738 25,866 of Concentrate from PepsiCo Contribution from Concentrate 258 671 1,098 1, 187 1,360 1,553 1,945 2,343 2,833 3,340 3,865 4,397 TV Concentrate 41,971 Total Cash Flow to PepsiCo (6,726) (3,631) (4,628) 767 3,619 2, 182 1,268 4,315 4,544 5,066 6,339 7,370 81,886 Discount Rate 16% NPV $10,060 IRR 24.5%