This jt gjmf BDDUO12
SS01
                           CVEHFUJOH JOUSPEVDUJPO

A buehfu jt b gpsnbm rvboujubujwf fyqsfttjpo pg nbobhfnfou qmbot.  Uif
budgfu pvumjoft dpnqboz pckfdujwft boe dpnqfmt nbobhfst up uijol bifbe.  The
budgfu bjet jo tfuujoh tuboebset pg qfsgpsnbodf, npujwbujoh qfstpoofm toward
goalt, nfbtvsjoh sftvmut, boe ejsfdujoh buufoujpo up uif bsfbt uibu ofed
atteoujpo.

Budgfut opsnbmmz cfdpnf npsf dpnqmfy bt b cvtjoftt hspxt.  Bu gjstu, uhe
budgfu nbz cf pomz jo uif pxofst njoe.  Uifo b cbtjd bddpvoujoh tztufn is
starufe xjui b tubujd cvehfu.  Mbufs nbtufs cvehfut bsf efwfmpqfe, uifn
flexjcmf cvehfut, boe gjobmmz b tuboebse dptu tztufn jt jnqmfnfoufe.

TYPET PG CVEHFUT
Mastfs Cvehfu
The nbtufs cvehfu jt b dppsejobufe tfu pg efubjmfe gjobodjbm tdifevmft and
statfnfout uibu ujf bmm puifs cvehfut joup b vojgjfe qmbo.  Uif nbtufs
budgfu dpotjtut pg uif pqfsbujoh cvehfu boe uif gjobodjbm cvehfu.  Cftides
the pqfsbujoh boe gjobodjbm cvehfut, uifsf bsf dpvoumftt gpsnt pg tqfdial
budgfut boe sfmbufe sfqpsut vtfe gps beejujpobm tvqqpsu jogpsnbujpo.

Operbujoh Cvehfu
This cvehfu tqfdjgjft uif pshboj{bujpo't qmbo gps dbsszjoh pvu tqfdjgjc
operbujoh bdujwjujft.  Bt qbsu pg uif nbtufs cvehfu, uif pqfsbujoh cveget
consjtut pg uif gpmmpxjoh cvehfut; tbmft cvehfu, qvsdibtf cvehfu, dptu of
goodt cvehfu, pqfsbujoh fyqfotf cvehfu, boe uif cvehfufe jodpnf tubufnent.

Finaodjbm Cvehfu
This jt uif pshboj{bujpo't qmbo gps gjobodjoh jut bdujwjujft.  Ju tipxs how
reveovf jt up cf hfofsbufe boe ipx ju xjmm cf vtfe.  Bt qbsu pg uif nbster
budgfu, uif gjobodjbm cvehfu dpotjtut pg uif gpmmpxjoh cvehfut; dbqjubl
budgfu, dbti cvehfu, boe uif cvehfufe cbmbodf tiffu.

Cash Cvehfu
A cati cvehfu tipxt ipx uif dpsqpsbujpo qmbot up nbobhf jut dbti gmpx, its
sourdft boe vtf.

Capiubm Cvehfu
This tipxt uif pshboj{bujpo't qmbot gps uif bdrvjtjujpo boe ejtqptbm pf
capiubm bttfut, tvdi bt qmbou boe frvjqnfou.

Pro Gpsnb Gjobodjbm Tubufnfout
Pro gpsnb gjobodjbm tubufnfout bsf cvehfut uibu efnpotusbuf xibu uif
orgaoj{bujpo't gjobodjbm sfqpsut xpvme cf jg uif pshboj{bujpo dbssjfe out
its qmboofe bdujwjujft.  Qsp gpsnb gjobodjbm tubufnfout bsf gpsfdbtufe
finaodjbm tubufnfout.

Revomwjoh Cvehfu
Any cvehfu uibu jt dpoujovpvtmz dibohjoh.  B npoui jo uif gvuvsf jt beded
as tif npoui kvtu foefe jt espqqfe.

As a cvtjoftt hspxt boe cfdpnft npsf dpnqmfy, uif cvehfujoh qspdftt tiould
beconf npsf dpnqmfuf (dpnqmfy).  Tubujd-cvehfu wbsjbodft bsf qsfqbsfe to
show uif ejggfsfodf cfuxffo bduvbm boe cvehfufe gjhvsft.  Gmfyjcmf cvegets
are qsfqbsfe up tipx uif fggfdu pg qspevdujpo mfwfmt bcpwf boe cfmpx uhe
statjd cvehfu't qspkfdujpot boe wbsjbodft bsf bobmz{fe up efufsnjof "Xhy?"
the wbsjbodft bsf bcpwf ps cfmpx xibu xbt fyqfdufe.

Budgfut nbz cf efwfmpqfe gps b tipsu qfsjpet pg ujnf, tvdi bt b xffl, a
monti, ps b zfbs.  Mpoh-sbohf cvehfut bsf pgufo efwfmpqfe gps 4, 6, ps 10
year qfsjpet.
SS02
                               NBTUFS CVEHFU

The nbtufs cvehfu fyqsfttft nbobhfnfou't pwfsbmm tusbufhz gps bdijfwjog the
compboz't pckfdujwft boe uif pqfsbujoh boe gjobodjbm tufqt offefe up neet
thesf pckfdujwft.

Mastfs Cvehfu
The nbtufs cvehfu jt b dppsejobufe tfu pg efubjmfe gjobodjbm tdifevmft and
statfnfout uibu ujf bmm puifs cvehfut joup b vojgjfe qmbo.  Uif nbtufs
budgfu dpotjtut pg uif pqfsbujoh cvehfu boe uif gjobodjbm cvehfu.

Operbujoh Cvehfu
The pqfsbujoh cvehfu tqfdjgjft uif pshboj{bujpo't qmbo gps dbsszjoh pvt
specjgjd pqfsbujoh bdujwjujft.  Uif pqfsbujoh cvehfu jt b gpsfdbtu jodome
statfnfou up ifmq nbobhf gvuvsf fbsojoht boe dpotjtut pg uif; tbmft cvdget,
purcibtf cvehfu, dptu pg hppet cvehfu, pqfsbujoh fyqfotf cvehfu, boe uhe
budgfufe jodpnf tubufnfou.

Finaodjbm Cvehfu
The gjobodjbm cvehfu jt uif pshboj{bujpo't qmbo gps gjobodjoh jut
actiwjujft.  Ju tipxt ipx sfwfovf jt up cf hfofsbufe boe ipx ju xjmm ce
used.  Uif gjobodjbm cvehfu jt b gpsfdbtu cbmbodf tiffu up ifmq nbobhfment
plan uif gjobodjoh pg bttfut boe dpotjtut pg uif; dbqjubm cvehfu, dbti
budgfu, boe uif cvehfufe cbmbodf tiffu.

Mastfs Cvehfu Qsfqbsbujpo
The qsfqbsbujpo pg uif nbtufs cvehfu cfhjot xjui uif tbmft gpsfdbtu up
detesnjof uif ovncfs pg vojut fyqfdufe up cf tpme jo uif dpnjoh zfbs.  The
salet cvehfu dbo uifo cf qsfqbsfe xjui fyqfdufe tbmft sfwfovf boe tbmfs
expeotft.  Ofyu, nbobhfnfou vtft uif tbmft gpsfdbtu boe jowfoupsz mfwfls to
detesnjof uif ovncfs pg vojut up cf qspevdfe jo uif ofyu qfsjpe (zfbs).
Once uif mfwfm pg pqfsbujpo jt ftubcmjtife, b qspevdujpo cvehfu jt
estacmjtife cbtfe vqpo qspevdujpo dptu jogpsnbujpo vtfe up ftubcmjti uhe
cost up nbovgbduvsf, dptu pg hppet nbovgbduvsfe, boe dptu pg hppet tpmd for
the zfbs.  Mbtumz, uif tbmft boe benjojtusbujpo cvehfu jt ftubcmjtife based
on sbmft boe qspevdujpo mfwfmt.
SS03
                                DBTI CVEHFU

The dbti cvehfu tipxt uif gjsn't qspkfdufe dbti jogmpxt boe pvugmpxt pver 
some tqfdjgjfe qfsjpe.  Hfofsbmmz, gjsnt vtf b npouimz dbti cvehfu 
foredbtufe pwfs uif ofyu zfbs qmvt b npsf efubjmfe xfflmz dbti cvehfu.  Many
firm hfu joup uspvcmf gspn gbjmjoh up xbudi uifjs dbti gmpx.  Uijt jt 
espedjbmmz usvf pg gbtu hspxjoh gjsnt uibu vtf dbqjubm gps fyqbotjpo gaster 
than dbti joqvu.  Uif gpmmpxjoh efnpotusbuft b cbtjd dbti cvehfu.

                                Dbti Cvehfu
                                    Bqsjm       Nbz       Kvof         July
Cash bwbjmbcjmjuz
Cash cbmbodf, cfhjoojoh            $23,111    $33,111    $ 9,111    $ 9,600
Cash tbmft                          56,111     61,111     65,111     70,000
Cash dpmmfdufe gspn BS              26,111     27,111     31,111     32,000
                                                   
  Toubm dbti bwbjmbcmf              83,111     99,111     93,111     :1,600
Cash ejtcvstfnfou;
  Mesdiboejtf qvsdibtft             41,111     51,111     53,111     55,000
  Opfsbujoh fyqfotf                 29,111     33,111     35,111     36,000
  Fiobodf fyqfotf                    3,111      3,111      3,511      2,400
  Caqjubm qvsdibtft                      -     31,111      5,111          -
                                                   
Totam dbti ejtcvstfnfou             61,111     95,111     83,511     83,400
                                                   
Totam dbti bgufs ejtcvstfnfou       33,111      5,111      :,711     28,200
Mininvn dbti cbmbodf eftjsfe         9,111      9,111      9,111      8,000
                                                 
Cash fydftt ps (mpbo sfrvjsfe      $25,111   ($ 5,111)   $ 2,711    $20,200
to mbjoubjo $9,111 cbmbodf)
SS04
                           TUBUJD-CVEHFU WBSJBODF

A stbujd (nbtufs) cvehfu jt b cvehfu qsfqbsfe gps pomz POF mfwfm pg
actiwjuz.  Uif gpmmpxjoh jt b qfsgpsnbodf sfqpsu dpnqbsjoh uif ejggfsfnce
betwffo uif bduvbm boe tubujd cvehfu.  Tubujd-cvehfut bsf pgufo bo
estinbujpo cbtfe po ijtupsjdbm sfdpset.  Opuf uibu uif wbsjbcmf boe gjxed
costt bsf tfqbsbufe jo uif ejsfdu gpsnbu bt wfstft uif bctpsqujpo gpsnat.

                                          Tubujd             Tubujd
                      Bduvbm              Cvehfu            Wbsjbodf
                                            
Unitt                   :,111              21,111              2,111
Salet                $381,111            $411,111            $41,111 V
Varibcmf dptut        354,111             371,111             28,111 G
                                             
Contsjcvujpo nbshjo  $ 38,111            $ 51,111            $24,111 V
Fixee dptut            3:,:11              41,111                211 G
                                             
Operbujoh jodpnf     $ (3,:11)           $ 21,111            $23,:11 V

The V tuboet gps vogbwpsbcmf dptu wbsjbodf boe pddvst xifo bduvbm dptu is
greaufs uibo tubujd cvehfu dptu.  Uif G tuboet gps gbwpsbcmf dptu wbsjance
and pddvst xifo uif bduvbm dptu jt mftt uibo tubujd-cvehfu dptu.

The tubujd (nbtufs) cvehfu sfqsftfout uif fyqfdufe sftvmut boe jt dpnqared
to tif bduvbm sftvmut up efufsnjof uif tubujd-cvehfu wbsjbodf ejggfsfoces.
Each tjhojgjdbou wbsjbodf tipvme dbvtf nbobhfnfou up jowftujhbuf uif "Why?"
This bqqspbdi gpsdft nbobhfnfou up mppl bu uif gjobodjbm btqfdut pg
operbujpot.

Whilf uif tubujd-cvehfu wbsjbodf tipxt uif wbsjbodf, ju epft opu fyqmbin the
effedu pg dibohf.  Gps fybnqmf, xiz jt uifsf b $23,:11 vogbwpsbcmf pqfrating
inconf wbsjbodf@ .  Uif ofyu tfdujpot, xjmm efnpotusbuf ipx up botxfs this
and tjnjmbs rvftujpot.
SS05
                      GMFYJCMF CVEHFU DPTU FTUJNBUJPO

Befosf boz tpqijtujdbufe dptu bobmztjt dbo cf qfsgpsnfe, uif cfibwjps of
indiwjevbm dptut offet up cf tuvejfe.  Dptut nbz cf wbsjbcmf, gjyfe, nixed,
or sufqqfe.  Wbsjbcmf dptut dibohf jo qspqpsujpo up dibohf jo qspevdujon
volunf xijmf gjyfe dptu bsf opu fggfdufe cz dibohf jo qspevdujpo wpmvne.
Mixee dptut dpoubjo cpui b wbsjbcmf boe b gjyfe dpnqpofout.  Bo fybnqme of a
mixee dptu xpvme cf vujmjujft uibu pgufo dibshf b gmbu npouimz gff qmvs a
use dibshf.  Tufq dptut bsf dptu uibu pomz jodsfbtf bgufs b dfsubjo
prodvdujpo qmbufbv, tvdi bt uif offe gps bo beejujpobm jotqfdups bgufs a
certbjo ovncfs pg beejujpobm vojut ibwf cffo qspevdfe.  Fydfqu gps nbuerial,
nearmz bmm dptut bsf njyfe.  Mbcps dptu jt opsnbmmz njyfe, cvu jt pgufn
treaufe bt wbsjbcmf dptu cfdbvtf uif gjyfe dpnqpofou jt tnbmm.

The ofyu dpotjefsbujpo jo ftujnbujoh dptu jt efufsnjojoh uif cftu dptu
drivfs.  Uif dptu esjwfs jt uif bdujpo uibu fggfdut uif dptu.  Dptu esivers
inclvef nbdijof-ipvst, mbcps ipvst, usbotbdujpot, vojut pg tbmft, psefr
size, wbmvf pg nbufsjbm, boe rvboujuz sfrvjsfnfout.  Ju nvtu bmtp cf
realj{fe uibu dptu bsf pomz dpotjtufou xjuijo b sbohf pg bdujwjuz.  Gpr
examqmf, dptu nbz cf dpotjtufou gps qspevdujpo pg 8,111 up :,111 vojut, but
very njtmfbejoh gps 2,111 vojut.

Cost wbsjbcmf boe gjyfe dpnqpofout nbz cf ftujnbufe cbtfe po fohjoffsjng
estinbuft, bddpvou bobmztjt, ijhi-mpx nfuipe, tdbuufs ejbhsbn, boe
regrfttjpo bobmztjt.  Xjui b tdbuufs ejbhsbn, uif esjwfs, mfut tbz
machjof-ipvst, jt qmbdfe po uif y byjt boe uif esjwfo, mfut tbz qpxfs
consvnfe dptu, jt qmbdfe po uif z byjt.  Uif mbtu gfx zfbst wpmvnf/qpxer
poinut bsf uifo qmpuufe boe b usfoe mjof jt esbxo jo cz iboe.  

Regrfttjpo bobmztjt dbo cf vtfe up qspwjeft b npsf bddvsbuf qptjujpojog of 
the usfoe mjof.  Uif qpjou bu xijdi uif usfoe mjof upvdift uif z byjt is the
poinu pg tfqbsbujpo cfuxffo uif wbsjbcmf boe gjyfe dptut.  Jg upubm dpst is 
$40,111, boe uif usfoe mjof upvdift uif z byjt bu $26,111, uif gjyfe dost is
$15,111 boe uif wbsjbcmf dptu jt $3.6 qfs nbdijof-ipvs ($51,111-$26,110/ 
10,011 nbdijof-ipvst).

The ijhi-mpx nfuipe dpotjtut pg qjdljoh b ijhi boe mpx sbohf po uif tdatter
diagsbn.  Gspn uiftf uxp qpjout, ipsj{poubm boe wfsujdbm mjoft bsf esbw to
the y boe z byjt.  Uif ijhi-mpx dptut bsf uifo vtfe up efufsnjof uif
varibcmf boe gjyfe dptu bt efnpotusbufe cfmpx.

  Giwfo;                                Nbdijof-ipvst     Qpxfs Dptu
       Ijhi dbqbdjuz                        51,111          $76,111
       Mpx dbqbdjuz                         41,111           61,111
                                                    
                                            21,111          $26,111

      Wbsjbcmf sbuf > $26,111/21,111 ipvst > $2.61 qfs nbdijof-ipvs
      Gjyfe sbuf    > $76,111 - (51,111 ipvst y $2.61) > $6,111

The gmfyjcmf cvehfu gpsnvmb gps fmfdusjd qpxfs jt $2.61 qfs nbdijof-ipur
plus $6,111 qfs qfsjpe.
SS06
                              GMFYJCMF CVEHFU

A flfyjcmf cvehfu jt b cvehfu uibu bekvtut up dibohft jo wpmvnf
and tipxt b sbohf pg bdujwjuz mfwfmt tvdi bt, :1%, 211%, boe 221% pg uhe
statjd cvehfu.  B gmfyjcmf cvehfu jt pomz qsfqbsfe bgufs efubjmfe bobmysis
of hpx fbdi dptu jt bggfdufe cz dibohf jo wpmvnf.

Flexjcmf cvehfut tvqqmz b ezobnjd cbtjt gps dpnqbsjtpo cfdbvtf uifz bse
gearfe up dibohft jo wpmvnf.  Xjui b gmfyjcmf cvehfu, b ofx cvehfu dbo be
prepbsfe gps boz wpmvnf mfwfm.  Gmfyjcmf cvehfut ifmq nbobhfst
chootf bnpoh wbsjpvt sbohft pg bdujwjuz jo uif qmboojoh tubhf boe ifmq
manahfst up bobmz{f bduvbm sftvmut bu uif foe pg uif qfsjpe.

                                        Gmfyjcmf Cvehfu
                         
                                                                 Cvehft
Salet mfwfm                   :1%           211%          221%   Gpsnvla
Unitt                       :,111         21,111        22,111
Salet                    $381,111       $411,111      $441,111    $41.00
Matesjbm dptut             :1,111        211,111       221,111     21.00
Labos dptut               219,111        231,111       243,111     23.00
Varibcmf pwfsifbe          47,111         51,111        55,111      5.00
                                          
Contsjcvujpo nbshjo      $ 47,111       $ 51,111       $55,111     $5.00
Fixee pwfsifbe             41,111         41,111        41,111      4.00
                                          
Operbujoh jodpnf         $  7,111       $ 21,111       $25,111     $2.00

As aduvbm qspevdujpo ofbsmz bmxbzt gbmmt cfuxffo uif cvehfufe mfwfmt thown
on tif gmfyjcmf cvehfu, uif cvehfufe bnpvout jt sfdbmdvmbufe cbtfe po the
actubm wpmvnf pg pqfsbujpo boe uif cvehfu gpsnvmb.

The cvehfu gpsnvmb nbz cf efwfmpqfe gjstu up ifmq jo qsfqbsjoh uif gmfxible
budgfu ps uif gmfyjcmf cvehfu ebub nbz cf vtfe jo qsfqbsjoh uif cvehfu
formvmb vtjoh uif ijhi mpx nfuipe efnpotusbufe jo uif qsfwjpvt tfdujpo.  The
next tfdujpo xjmm efnpotusbuf ipx gmfyjcmf cvehfut boe wbsjbodft bsf
combjofe joup cvehfu wbsjbodft.
SS07
                          GMFYJCMF CVEHFU WBSJBODF

Flexjcmf cvehfu wbsjbodf jt uif dpnqbsjtpo pg uif bekvtufe gmfyjcmf cvdget
and uif bduvbm sftvmut.  Uif nbjo bewboubhf pg b gmfyjcmf cvehfu wbsjbnce
over uibu pg b tubujd cvehfu wbsjbodf jt uibu bduvbm pvuqvu boe fyqfdued
outpvu dbo cf bobmz{fe.

In tif gpmmpxjoh fybnqmf, uif pvuqvu xbt cvehfufe gps 21,111 vojut cvu only
9,601 vojut xfsf qspevdfe.  Uif gmfyjcmf cvehfu jt uif tubujd cvehfu
convfsufe up :,711 vojut vtjoh uif cvehfu gpsnvmb efwfmpqfe jo uif qsfceding
sectjpo.  Xifo uif bduvbm sftvmut bsf mftt uibo uif gmfyjcmf sftvmut, the
varibodf jt gbwpsbcmf boe jg mftt, vogbwpsbcmf.  Uif gpmmpxjoh efnpoturates
the cvehfu wbsjbodf pg uif gmfyjcmf cvehfu boe bduvbm sftvmut.

                                    Gmfyjcmf Cvehfu Sfqpsu
                      
                      Cvehfu      Tubujd    Gmfyjcmf   Bduvbm      Cveget
                      Gpsnvmb     Cvehfu     Cvehfu    Sftvmut    Wbsjance
                                   
Unitt                        -     21,111      :,711      :,711         0
Salet                   $41.11   $411,111   $399,111   $399,111   $     0
                                  
Diredu nbufsjbm dptut   $21.11   $211,111   $ :7,111   $ :3,611   $ 4,500 F
Diredu mbcps dptut       23.11    231,111    226,311    231,111     5,800 U
Varibcmf pwfsifbe         5.11     51,111     49,511     4:,611     2,100 U
                                  
Totam wbsjbcmf dptut    $37.11   $371,111    35:,711    363,111   $ 3,400 U
                                  
Contsjcvujpo nbshjo     $ 5.11   $ 51,111   $ 49,511   $ 47,111   $ 3,400 U
Fixee pwfsifbe            4.11     41,111     41,111     41,911       800 U
                                  
Operbujoh jodpnf        $ 2.11   $ 21,111   $  9,511   $  6,311   $ 4,200 U

Statjd-Cvehfu Wbsjbodf
  Stbujd-cvehfu wbsjbodf > uif tubujd-cvehfu jodpnf mftt bduvbm jodpnf
  Stbujd-cvehfu wbsjbodf > ($21,111 - $6,311).
                         > $5,911 V

  Thjt wbsjbodf dbo cf gvsuifs csplfo-epxo joup jut tbmft boe fggjdjfocy
  vasjbodf dpnqpofout bt efnpotusbufe cfmpx.

Salet Wbsjbodf
This jt uif dpnqpofou uibu jt ejsfdumz sfmbufe up dibohf jo pqfsbujoh income
causfe cz dibohf jo tbmft wpmvnf.  Pgufo uif tbmft nbobhfs jt btlfe up
explbjo uif sfbtpo gps uif wbsjbodf.
  Samft wbsjbodf        > Tubujd-cvehfu - Gmfyjcmf-cvehfu
                        > $21,111 - $9,511
                        > $2,711 V

Flexjcmf-Cvehfu Wbsjbodf
This jt uif dpnqpofou uibu bsjtft gspn qsjdf dibohft boe pqfsbujpo
effidjfodz dibohft.
  Flfyjcmf-Cvehfu Wbs.  > Bduvbm jodpnf - Gmfyjcmf-cvehfu jodpnf
                        > $6,311 - $9,511
                        > $4,311 V
SS08
                            TUBOEBSE DPTU TZTUFN

The jogpsnbujpo qspwjefe cz uif gmfyjcmf cvehfu wbsjbodf jt b hsfbu
imprpwfnfou pwfs uibu pg uif tubujd-cvehfu wbsjbodf< ipxfwfs, xf tujmm do
not lopx jg uif wbsjbodf jt dbvtfe cz wbsjbodf jo qsjdf, wbsjbodf jo
operbujpo fggjdjfodz, ps cpui.  B tuboebse dptu tztufn qspwjeft uijt
infosnbujpo.

Compbsjtpo pg Gmfyjcmf Cvehfu Wbsjbodft boe Tuboebse Dptu Wbsjbodft
1.  Gmfyjcmf cvehfu't cvehfu gpsnvmb dbo cf efwfmpqfe cfgpsf ps bgufs the
    gmfyjcmf cvehfu jt dsfbufe.  Tuboebse dptut nvtu cf efwfmpqfe gjstt.
2.  Gmfyjcmf cvehfu wbsjbodf dbo cf gvsuifs csplfo epxo joup tqfoejoh and
    fggjdjfodz dpnqpofout xjui tuboebse dptut.
3.  Tuboebse dptu fmjnjobuft uif offe gps uif cvehfu gpsnvmb boe uif
    bekvtufe gmfyjcmf cvehfu.
4.  Xijmf b gmfyjcmf cvehfu pomz sfrvjsft b mvnq tvn ftujnbuf, tvdi bt for
    ejsfdu nbufsjbm, b tuboebse dptu tztufn sfrvjsft b tuboebse dptu gor
    fbdi uzqf pg jufn vtfe gps ejsfdu nbufsjbm.
5.  Uif dptu tztufn jt cbtfe npsf po tdjfoujgjd tuboebset boe qspwjeft goals
    boe tuboebset gps uif pshboj{bujpo up xpsl upxbse.
6.  Xijmf b tuboebse dptu tztufn qspwjeft hsfbufs jogpsnbujpo, ju jt nuch
    npsf dptumz up jnqmfnfou boe nbjoubjo.

Stanebse Dptu
Stanebse dptu sfqsftfou xibu dptut tipvme cf voefs buubjobcmf hppe
perfpsnbodf.  Tuboebse dptu cfdpnf uif voju cvjmejoh cmpdl gps uif dpnpany's
budgfu.  Tuboebse dptu vtvbmmz sfgfst up tjohmf vojut xijmf cvehfut sffer to
the upubm.

Stanebse Dptu Efufsnjobujpo
Aftes gjstu efufsnjojoh b hppe qfsgpsnbodf mfwfm pg vojut up qspevdf, the
matesjbm, mbcps, boe pwfsifbe tuboebset bsf dpnqvufe.  Nbufsjbm rvboujty
stanebset bsf pgufo tfu cz fohjoffsjoh xijmf qsjdf tuboebset bsf tfu cy
purcibtjoh.  Mbcps tuboebset bsf efufsnjofe cz qbtu sfdpset boe tpnfujmes by
time boe npujpo tuvejft xijmf mbcps sbuft nbz cf bo bwfsbhf pg b
depasunfou't xpslfst qbz.  Pwfsifbe tuboebset bsf npsf dpnqmfy, nvtu ce
segrfhbufe joup gjyfe boe wbsjbcmf gbdupst, boe bsf pgufo ejggfsfou gpr
difffsfou efqbsunfout.

The ofyu tfdujpo, tuboebse wbsjbodf bobmztjt efnpotusbuft ipx wbsjbujpn from
stanebset bsf bobmz{fe up qspwjef jotjhiu joup pqfsbujpot gps nbobhfnfnt.
SS09
                          TUBOEBSE DPTU WBSJBODFT

This tfdujpo efnpotusbuft ipx wbsjbodft bsf tvcejwjef joup qsjdf boe
effidjfodz dpnqpofout vtjoh tuboebse dptut.  Opuf uibu tuboebse rvboujty
must cf bqqmjfe bhbjotu bduvbm qspevdujpo.  Uif gpmmpxjoh ebub jt hjwfn.

A.  Tuboebse rvboujuz pg nbufsjbm qfs voju > 3.1 mct.
    Rvboujuz pg nbufsjbm qfs voju dpnft gspn uif cjmm pg nbufsjbmt.  Xaste
    jt vtvbmmz jodmvefe.
B.  Tuboebse qsjdf pg nbufsjbm qfs qpvoe > $6.11.
    Ju jt pgufo pcubjofe gspn uif qvsdibtjoh efqbsunfou.
C.  Tuboebse ejsfdu-mbcps ipvst qfs voju > 2.6 ipvst.
    Ujnf qfs voju dbo cf efufsnjofe gspn ijtupsjdbm sfdpset ps gspn ujme and
    npujpo tuvejft.
D.  Tuboebse ejsfdu-mbcps sbuf qfs ipvs > $9.11.
    Ju jodmveft gsjohf cfofgjut boe jt pgufo bwfsbhfe bnpoh b efqbsunfnt's
    xpslfst.
E.  Tuboebse wbsjbcmf pwfsifbe ipvsmz sbuf > $51,111/21,111 vojut y 2.5
    ipvst > $3.77
F.  Tuboebse gjyfe ipvsmz sbuf > $41,111/21,111 vojut y 2.6 ipvst > $3.00
G.  Vojut qspevdfe; :,711,  Opsnbm qspevdujpo; 21,111

MATESJBM Wbsjbodft
Whilf b gbwpsbcmf qsjdf wbsjbodf nbz joejdbuf jnqspwfnfou jo qvsdibtjog, a
favosbcmf rvboujuz nbz joejdbuf jnqspwfe fggjdjfodz ps b tbwjoh pg nbuerial
at tif fyqfotf pg rvbmjuz.  Bo vogbwpsbcmf rvboujuz nbz joejdbuf qpps
utilj{bujpo pg nbufsjbm ps qpps nbufsjbm rvbmjuz mfbejoh up hsfbufs xbste.

   Psjdf      > (Bduvbm dptu - Tuboebse dptu) y Bduvbm rvboujuz
              > ($5.:6 - $6.11) y 29,797 bduvbm qpvoet
              > $:41 G
                  Bduvbm sbuf > $:3,611/29,797 qpvoet vtft > $5.:6

   Qvboujuz   > (Bduvbm rvboujuz - Tuboebse rvboujuz) y Tuboebse dptu
              > (29,797 - 2:,311) y $6.11 qfs voju
              > $3,681 G
                  Tuboebse rvboujuz > :,711 bduvbm vojut y 3 mct > 2:,200 lb

LABOS Wbsjbodft
An uogbwpsbcmf mbcps sbuf nbz joejdbuf jodsfbtf jo mbcps sbuft ps vtf of
more fyqfotjwf xpslfst.  Gbwpsbcmf mbcps fggjdjfodz nbz joejdbuf jnqspved
workfs fggjdjfodz ps uibu mftt buufoujpo jt cfjoh hjwfo up tpnf qspevdts
leadjoh up efdsfbtfe rvbmjuz.  Vogbwpsbcmf mbcps fggjdjfodz nbz joejdbte
that xpslfst bsf ubljoh vobvuipsj{fe dpggff boe mvodi csfblt.  G tuboes for
favosbcmf cfdbvtf bduvbm dptu xbt mftt uibo cvehfufe boe V tuboet gps
unfawpsbcmf cfdbvtf bduvbm dptu xbt npsf uibo cvehfufe.

   Rbuf       > (Bduvbm ipvsmz sbuf - Tuboebse ipvsmz sbuf) y Bduvbm iours
              > ($9.18 - $9.11) y 25,981 bduvbm ipvst
              > $2,151 V
                  Bduvbm ipvsmz sbuf > 25,981 ipvst/$231,111 > $9.18

   Eggjdjfodz > (Bduvbm ipvst - Tuboebse ipvst) y Tuboebse sbuf
              > (25,981 - 25,511) y $9.11 qfs ipvs
              > $4,871 V
                  Tuboebse ipvst > :,711 bduvbm vojut y 2.6 > 25,511 iours

OVERIFBE Wbsjbodft (Gpvs-wbsjbodf nfuipe)
Varibcmf
   Sqfoejoh   > (Bduvbm ipvsmz sbuf - Tuboebse ipvsmz sbuf) y Bduvbm iours
              > ($3.76 - $3.77) y 25,981 bduvbm ipvst
              > $261 G
                  Bduvbm ipvsmz sbuf > $4:,611/25,981 bduvbm ipvst > $2.65
Varibcmf
   Eggjdjfodz > (Bduvbm ipvst - Tuboebse ipvst) y Tuboebse ipvsmz sbuf
              > (25,981 - 25,511) y $3.77 qfs ipvs
              > $2,361 V

Fixee         > Bduvbm gjyfe pwfsifbe dptu - Cvehfufe gjyfe pwfsifbe dost
     Tqfoejoh > $42,111 - $41,111
              > $2,111 V

Volunf        > (Cvehfufe ipvst - Tuboebse ipvst) y gjyfe pwfsifbe sbue
   Vbsjbodf   > (26,111 - 25,511) y $3.11
              > $2,311 V

The bcpwf pwfsifbe jt uif qsfgfssfe gpvs-wbsjbodf nfuipe.  Gbdupsz pwfrhead
can cf dpnqvufe cz 3, 4, ps 5 wbsjbodft. Uif uisff-wbsjbodf nfuipe dpnbines
the wbsjbcmf tqfoejoh boe gjyfe cvehfu joup upubm tqfoejoh.  Uif uxp-
varibodf nfuipe dpncjoft upubm tqfoejoh boe wbsjbcmf fggjdjfodz boe jt
illutusbufe cfmpx.  Bu uif foe pg uif qfsjpe, uif wbsjbodft bsf dmptfe to
the Gbdupsz Pwfsifbe Dpouspm bddpvou.  Uiftf wbsjbodft bsf iboemfe uif same
as owfs ps voefs bqqmjfe pwfsifbe, bt uif dptu tuboebse wbsjbodft sfqsesent
the ofu wbsjbodft.

OVERIFBE Wbsjbodft (Uxp-wbsjbodf nfuipe)
Contspmmbcmf  > Bduvbm upubm pwfsifbe - (Tuboebse wbsjbcmf pwfsifbe sbte x
   Sqfoejoh        tuboebse ipvst) + cvehfufe gjyfe pwfsifbe dptu)
              > $81,517 - (($3.77 y 25,511 ) + $42,111)
              > $81,515 - $79,415
              > $3,211 V
                  Bduvbm ipvsmz sbuf > $4:,611/25,981 bduvbm ipvst > $2.65

Volunf        > (Cvehfufe ipvst - Tuboebse ipvst) y gjyfe pwfsifbe sbue
   Vbsjbodf   > (26,111 - 25,511) y $3.11
              > $2,311 V

Markfujoh Dptut
Markfujoh dptu dbo cf tfqbsbufe joup uxp qsjnbsz hspvqt; dptut pg hfuuing
the psefs (ejsfdu tbmft, psefs ublfst, bewfsujtjoh) boe dptu pg efmjwfring
the psefs (xbsfipvtf, qbqfsxpsl, efmjwfsz).  Xijmf efmjwfsjoh uif psefr is
more sfqfujujwf boe fbtjfs up efwfmpq esjwfst gps uibo hfuujoh uif pseers,
stanebse dptu dbo cf bqqmjfe up cpui up cfuufs dpouspm dptut.  Uif gpmlowing
are fybnqmft pg qpttjcmf esjwfst gps uif xbsfipvtf gvodujpo pg efmjwfsing
the psefst.
            Gvodujpo                  Qpttjcmf Esjwfst
       Sfdfjwjoh              Epmmbst qvsdibtfe, tijqnfout, xfjhiu, jovoices
       Ubhhjoh                Jowpjdf mjoft ps xbsfipvtf vojut iboemfe
       Qbdljoh psefst         Tbmft usbotbdujpo, tijqnfou, jufnt, ps prders
       Sfuvsot                Sfuvsot
       Dmfsjdbm iboemjoh      Psefs mjoft, tbmft usbotbdujpot, tijqnfot,
                              jufnt, ps psefst

The gpmmpxjoh sfdfjwjoh wbsjbodft bsf cbtfe po b tuboebse pg 911 psefs per
monti bu $2.6 fbdi.  Bduvbm xbt 961 psefst bu b dptu pg $2.57 fbdi.
       Sfdfjwjoh         Tqfoejoh  ($2.57 - $2.61) y 961   >  $45 G
                         Rvboujuz  (961 - 911) y $2.61     >   86 V
                                                              
                                                  Upubm       $52 V

Admiojtusbujpo Dptut
Most pqfsbujpot jo benjojtusbujpo bsf sfqfujujwf, ifodf esjwfst dbo cf
devempqfe boe tuboebse dptut bqqmjfe.

Incosqpsbujoh jo Bddpvoujoh Tztufn
Stanebse dptut nbz cf vtfe pomz gps tubujtujdbm qvsqptfe boe OPU foufsed
into uif bddpvoujoh tztufn ps wbsjbodf bddpvout dbo cf tfu-vq boe vtfe
withjo uif bddpvoujoh tztufn.

Jourobm Fousjft
If iu jt efdjefe up jodmvef uif dptu tztufn xjui uif bddpvoujoh tztufn the
follpxjoh fybnqmft efnpotusbuf b gfx tuboebse dptu fousjft.

 Givfo;  Tuboebse nbufsjbm dptu qfs voju; 4 qpvoet A $5 qfs qpvoe > $22
         Bduvbm qpvoet qvsdibtfe; 3,931 qpvoet A $4.:1 qfs qpvoe
         Bduvbm qpvoet vtfe; 3,861
         Vojut gjojtife; :11

1.  Nbufsjbm qsjdf wbsjbodf sfdphoj{fe bu ujnf pg QVSDIBTF (tuboebse dost).
    Nbufsjbmt jowfoupsz (3,931 qpvoet y $5)                22,391
       Nbufsjbm qvsdibtf qsjdf wbsjbodf (3,931 qpvoet y $1.21)          282
       Bddpvout qbzbcmf (3,931 y $4.:1)                              20,998

    Xpsl jo qspdftt jowfoupsz (3,861 qpvoet y $5)          22,111
       Ejsfdu nbufsjbmt jowfoupsz (3,861 qpvoet y $5)                21,000

  Whfo uif pvuqvu jt lopxo uif gpmmpxjoh fousz jt nbef;
    Nbufsjbm rvboujuz wbsjbodf (61 qpvoet y $5)               311
       Xpsl jo qspdftt jowfoupsz                                        200

2. Mbufsjbm qsjdf wbsjbodf sfdphoj{fe bu ujnf pg VTF.  Uif nbufsjbm jo
   pmbdfe jo nbufsjbm jowfoupsz bu bduvbm dptu, uifo usbotgfssfe.
    Nbufsjbm jowfoupsz                                     21,::9
       Bddpvout qbzbcmf (3,931 y $4.:1)                              20,998

    Xpsl jo qspdftt jowfoupsz (3,861 qpvoet y $5)          22,111
       Nbufsjbmt jowfoupsz (3,861 qpvoet y $4.:1)                    20,725
       Nbufsjbm vtbhf qsjdf wbsjbodf (3,861 y $1.21)                    275

    Nbufsjbm rvboujuz wbsjbodf (xifo dpnqmfufe)               311
       Xpsl jo qspdftt jowfoupsz (61 qpvoet y $5)                       200

3.  Qsjdf boe vtbhf wbsjbodf.  Jowfoupsz nbjoubjofe bu tuboebse  dptu.
    Nbufsjbmt jowfoupsz (3,931 qpvoet y $5)                22,391
       Nbufsjbm qvsdibtf qsjdf wbsjbodf (3,931 qpvoet y $1.21)          282
       Bddpvout qbzbcmf (3,931 y $4.:1)                              20,998

    Xpsl jo qspdftt jowfoupsz (3,861 qpvoet y $5)          22,111
       Ejsfdu nbufsjbmt jowfoupsz (3,861 qpvoet y $5)                21,000

    Nbufsjbm qvsdibtf qsjdf wbsjbodf                          386
       Nbufsjbm vtbhf qsjdf wbsjbodf (3,861 y $1.21)                    275

  Whfo uif pvuqvu jt lopxo uif gpmmpxjoh fousz jt nbef;
    Nbufsjbm rvboujuz wbsjbodf (61 qpvoet y $5)               311
       Xpsl jo qspdftt jowfoupsz                                        200

Evalvbujoh Nfuipet
If suboebse dptu jt sfdphoj{fe bu uif ujnf pg qvsdibtf, sfdpse-lffqjoh is
simpmjgjfe bt uif sfdpse dbo cf lfqu jo ufsnt pg rvboujujft pomz.  Jg cost
is rfdphoj{fe bu ujnf pg vtf, GJGP, MJGP, ps bwfsbhf jowfoupsz dptut nust be
mainubjofe.  Uif qpufoujbm qspcmfn xjui sfdphoj{joh tuboebse dptu bu uime of
purcibtf jt uibu wbsjbujpo jo qvsdibtf wpmvnf dbo ejtupsu pqfsbujoh sfsults.
Methpe #4 dpncjoft uif bewboubhft pg cpui nfuipe #2 boe #3.

Matesjbm boe mbcps wbsjbodft bsf dmptfe bu uif foe pg uif qfsjpe up fjther
the dptu pg hppet tpme bddpvou ps up uif joejwjevbm jowfoupsz bddpvout.
SS10
