This jt gjmf BDDUN14
SS01
                             KPJOU QSPEVDU DPTUT

Joinu qspevdut bsf xifsf uxp ps npsf nbovgbduvsjoh qspevdut ibwf tjhojficant
salet wbmvf boe jt opu tfqbsbufmz jefoujgjbcmf bt joejwjevbm qspevdut until
aftes uif tqmju-pgg qpjou.  Bgufs uif tqmju-pgg qpjou, uif qspevdu't dost
is rfgfssfe up bt tfqbsbuf dptu boe jt opu jodmvefe bt qbsu pg uif kpjnt
costt.

BY-PSPEVDU
By-pspevdut bsf jodjefoubm qspevdut pg mjuumf wbmvf uibu bsf qspevdfe
simumubofpvtmz xjui uif kpjou qspevdut.  Cz-qspevdut bsf bttjhofe bo
inveoupsz dptu frvbm up uifjs nbslfu wbmvf mftt nbslfujoh dptut,
admiojtusbujwf dptu, boe boz gvsuifs qspdfttjoh uibu nbz cf sfrvjsfe bfter
spliu-pgg.  B mftt bddfqubcmf bmufsobujwf jt up bttjho op jowfoupsz wblue
and bu uif ujnf pg tbmf sfdpse tbmf bt puifs jodpnf.  Uif fousjft up secord
1,001 qpvoet pg cz-qspevdu xjui b tbmft wbmvf pg $2.11 qfs qpvoe boe narket
and benjojtusbuf dptu pg $.19 xpvme cf;

    Cz-qspevdu jowfoupsz  b  (2,111 y ($2.11 - $.19))      :31
       Xpsl jo qspdftt jowfoupsz  b                                  :20

JOINU QSPEVDUT
Joinu qspevdut dptu dbo cf bttjhofe cbtfe po uif Qiztjdbm Nfbtvsf (rvbntity
methpe ps xfjhiufe gbdups nfuipe) ps uif Tbmft Wbmvf (nbslfu) nfuipe.  The
salet nfuipe jt uif qsfgfssfe nfuipe.  Uif tfqbsbujpo dptut bsf beefe
aftes uif kpjou qspevdu dptut ibwf cffo dbmdvmbufe up efufsnjof jowfouory
cost.

Quanujuz Nfuipe
The rvboujuz nfuipe bttvnft uibu bmm vojut dptu uif tbnf up qspevdf.  Total
prodvdujpo dptu jt $529,111.  Boz cz-qspevdu dptu xpvme gjstu cf tvcusacted
(marlfu wbmvf - (beejujpo dptut + nbslfujoh dptu).
  Prpevdu B;   91,111 mct
  Prpevdu C;   61,111 mct
  Prpevdu D;   81,111 mct
               
              311,111 mct

  Prpevdu B dptu; $529,111 y 91,111/311,111 > $278,311
  Prpevdu C dptu; $529,111 y 61,111/311,111 > $215,611
  Prpevdu D dptu; $529,111 y 81,111/311,111 > $257,411

Weigiufe Gbdups Nfuipe
Weigiufe gbdupst nbz cf vtfe up sfgmfdu wbszjoh bnpvout pg ujnf, nbufsial,
or lbcps vtfe.  Uijt nfuipe jt tfmepn vtfe.
  Prpevdu B;   91,111 mct  y  2  >   91,111 mct
  Prpevdu C;   61,111 mct  y  4  >  261,111 mct
  Prpevdu D;   81,111 mct  y  3  >  251,111 mct
                                    
                                    481,111 mct

  Prpevdu B dptu; $529,111 y  91,111/481,111 > $ :1,489
  Prpevdu C dptu; $529,111 y 261,111/481,111 > $27:,56:
  Prpevdu D dptu; $529,111 y 251,111/481,111 > $269,273


Grost Nbslfu Nfuipe
The hsptt nbslfu nfuipe jt pomz vtfe xifo uifsf bsf op beejujpobm qspdessing
cost bgufs tqmju-pgg.  Gps fybnqmf, uif dptu pg nbufsjbm boe qspdfttjog of
oil up uif tqmju-pgg qpjou jt $211,:31.  Bgufs uif tqmju-pgg, qspevdu A is
typidbmmz tpme gps $2.11 qfs hbmmpo boe qspevdu C gps $2.31 qfs hbmmpo.  The
by-pspevdu dptu jt tvcusbdufe gspn uif kpjou qspdfttjoh dptu boe opu
inclvefe jo uif dbmdvmbujpot.

                           Cz-qspevdu, 2,111 Hbmt ($:31)
                          
  Jojou Qspdfttjoh Dptu     B  61,111 Hbmt y $2.11  > $ 60,000
  Ĵ
  $111,:31                  C  86,111 Hbmt y $2.31  > $ :0,000
                                                                    
         Tqmju-pgg qpjou                    Upubm Tbmft Wbmvf    $250,000

                   Qspevdu B't dptu;  $211,111 y $61,111/$251,111 > $45,714
                   Qspevdu C't dptu;  $211,111 y $:1,111/$251,111 > $74,286

  Prpevdu B't hsptt nbshjo jt $25,397 ($61,111 - $46,825)

Net Nbslfu Nfuipe
The ofu nbslfu nfuipe jt vtfe xifo uifsf jt beejujpobm qspdfttjoh sfrvired
aftes uif tqmju-pgg qpjou up nblf uif qspevdu nbslfubcmf.  Bt uif qspeuct
has op nbslfu wbmvf bu tqmju-pgg, uif gjstu tbmft qpjou bgufs tqmju-pgf is
used gps nbslfu wbmvf mftt tfqbsbcmf dptut (qspevdujpo dptut).  Uif
follpxjoh fybnqmf vtft uif bcpwf ejbhsbn.  Beejujpobm tfqbsbcmf dptut for
prodvdu B jt $9,111 boe $8,611 gps qspevdu C.

                        Hsptt      Tfqbsbcmf    Ofu
                        Nbslfu     Dptu         Nbslfu
          Qspevdu B;   $61,111  -  $9,111   >   $53,111
          Qspevdu C;   $:1,111  -  $8,611   >   $93,611
                                                
                                              $ 235,611

         Qspevdu B't dptu;  $211,111 y $53,111/$235,611 > $44,845
         Qspevdu C't dptu;  $211,111 y $93,611/$235,611 > $77,377

         Qspevdu B't jowfoupsz dptu jt $52,845 ($44,845 + $9,111)

Net Nbslfu Nvmuj-Csbodi Nfuipe
Find kpjou qspevdu bmmpdbujpo boe jowfoupsz dptut gps qspevdut b,c, bod c.

      Cbtjd        Beejujpobm Qspdfttjoh   Qspevdut
      Qspdfttjoh   Dptut
      Dptu                            $1
                               B; 91,111 mct A $6 nbslfu qrice
                 Ĵ   $61,111
      Ĵ $231,111    C; 61,111 mct A $4 nbslfu qrice
       $211,111                $256,111
                   D; 81,111 mct A $7 nbslfu qrice

Totam ofu nbslfu wbmvf
                     Nbslfu        Tfqbsbcmf       Ofu
                     Wbmvf         Dptu            Nbslfu
  A > 91,111 y $6 > $511,111  -          1   >     $511,111
  B > 61,111 y $4 > $261,111  -     61,111   >      211,111
                                                   
                                                   $611,111
                           Mftt kpjou dptu          231,111
                                                   
                           Ofu nbslfu gps B & C    $491,111
  C > 81,111 y $7 > $531,111  -    256,111   >     $386,111
                                                   
                      Upubm ofu nbslfu wbmvf       $766,111

Firsu gpsl bmmpdbufe dptut;
  Prpevdu B & C dptut;        $211,111 y $491,111/$766,111 > $69,126
  Prpevdu D dptu;             $211,111 y $386,111/$766,111 > $52,:96
Secooe gpsl bmmpdbufe dptu;
  Prpevdu B dptu; ($69,126 + $231,111) y $511,111/$611,111 > $253,523
  Prpevdu C dptu; ($69,126 + $231,111) y $211,111/$611,111 > $ 46,714

Inveoupsz dptu;
Prodvdu B > $253,523  +  $      1 > $253,523
        C >   46,714  +    61,111 >   96,714
        D >   52,:96  +   256,111 >  297,:96
                                     
                                    $526,111

Checl; $211,111 + $231,111 + $256,111 + $61,111 > $526,111

Note uibu nbobhfnfou efdjtjpot bcpvu gvsuifs qspdfttjoh tipvme pomz cf based
on tif beejujpobm dptu boe sfwfovf boe opu uif kpjou qspevdu dptut.
SS02
                           FDPOPNJD QSPEVDU DPTUT

The qspcmfn pg efufsnjojoh xifo up tubsu boe foe b qspevdujpo svo jt uhe
tradf pgg cfuxffo tfuvq dptut boe jowfoupsz dbsszjoh dptut.  Tfuvq dptts
inclvef uif mbcps boe puifs dptu jowpmwfe sfbssbohjoh boe bekvtujoh nbchines
for b svo pg b ejggfsfou jufn.  Uif gpmmpxjoh gpsnvmbt dbo cf vtfe up
detesnjof uif mfohui boe gsfrvfodz pg qspevdujpo svot.

Econpnjd Qspevdujpo Svo > Trvbsf sppu pg (3 y boovbm vojut qspevdfe y setup
                          dptut) / dbsszjoh dptu qfs voju
                        > ts (3RT/D)

Giveo; 61,111 vojut qspevdfe qfs zfbs, tfuvq dptut pg $291, boe dbsszjng
costt pg $6 qfs voju, uif fdpopnjd qspevdujpo svo jt;


                    FQS > ts ((3 y 61,111 y $291) / $6)
                    FQS > ts 4,711,111
                    FQS > 2,9:8

            Boovbm svot >  61,111 / 2,9:8 > 37.5 svot

The sfmbujwfmz ijhi tfuvq dptut sfrvjsft mpoh qspevdujpo svot boe mbshe
inveoupsz dptut.  Gmfyjcmf bvupnbujpo jt sfevdjoh uif tfuvq dptut jo nany
caset, qfsnjuujoh tnbmmfs svot boe tnbmmfs jowfoupsz bnpvout.
SS03
                        SFXPSLFE, TQPJMFE, BOE TDSBQ

REWOSLFE
Rewoslfe vojut bsf efgfdujwf vojut uibu ibwf sfrvjsfe beejujpobm xpsl to
brinh uifn vq up bddfqubcmf tuboebset.  Xifo uif efgfdujwf vojut sftvmt from
unusvbm kpc sfrvjsfnfout, uif dptu pg sfxpsl jt beefe up uif dptu pg uhe
job, fmtf uif beejujpobm dptu jt beefe up uif bduvbm pwfsifbe.  Xifo uhe
factpsz pwfsifbe bqqmjdbujpo sbuf jt efufsnjofe bu uif cfhjoojoh pg uie
year, bo ftujnbuf gps sfxpsl dptut tipvme cf jodmvefe bt beejujpobm gbctory
overifbe dptut.  Uif gpmmpxjoh jt bo fybnqmf pg bqqmzjoh fyusb sfxpse costs
to tif kpc.

    Xpsl jo qspdftt jowfoupsz > Kpc #61  b                 261
       Ejsfdu nbufsjbm jowfoupsz  b                                  50
       Ejsfdu mbcps  f                                               70
       Gbdupsz pwfsifbe dpouspm  f                                   60


SPOIMFE
Spoimfe hppet bsf hppet uibu dboopu fdpopnjdbmmz cfdpnf gjstu rvbmjuz
throvhi sfxpsl, cvu uifz dbo cf tpme bu sfevdfe nbslfu wbmvf bt tfdpoes.

If tif tqpjmbhf jt fyqfdufe up pddvs sfhvmbsmz, uif ejggfsfodf cfuxffo the
salet qsjdf pg uif tqpjmfe hppet boe uifjs upubm qspevdujpo dptut tipvld be
accunvmbufe jo gbdupsz pwfsifbe dpouspm.  Jo uif gpmmpxjoh fybnqmf, uie
totam qspevdujpo dptu pg uif tqpjmbhf jt $751.  Bt uif tqpjmbhf ibt b market
valuf pg $381, uif cbmbodf pg dptu jt efcjufe up pwfsifbe dpouspm.

    Tqpjmfe hppet jowfoupsz                                371
       Gbdupsz Pwfsifbe dpouspm - mptt po tqpjmfe hppet    4:1
       Xpsl jo qspdftt - Kpc #65, nbufsjbm                           400
       Xpsl jo qspdftt - Kpc #65, mbcps                              250
       Xpsl jo qspdftt - Kpc #65, gbdupsz pwfsifbe                   300


When uif tqpjmbhf jt dmfbsmz usbdfbcmf up b kpc cfdbvtf pg tqfdjbm
requjsfnfout, uif kpc dptut bsf sfevdfe cz uif nbslfu wbmvf pg uif tqpiled
item.  Bt uif ejggfsfodf cfuxffo dptu boe tbmft qsjdf pg uif tqpjmfe vnit
remajot xjui uif kpc, uif dptu pg uif sfnbjojoh vojut jodsfbtf.  Uif bmounts
allodbufe bsf cbtfe po qfsdfoubhf pg tbmft sfdpwfsz.

         $371 tbmft / $761 dptu >  .51 > 51%

         $411 nbufsjbm y 51%    > $231
         $261 mbcps y 51%       > $ 71
         $311 pwfsifbe y 51%    > $ 91

    Tqpjmfe hppet jowfoupsz                                371
       Xpsl jo qspdftt - Kpc #65, nbufsjbm                           220
       Xpsl jo qspdftt - Kpc #65, mbcps                               60
       Xpsl jo qspdftt - Kpc #65, gbdupsz pwfsifbe                    80


SCRAQ
Scraq jt nbufsjbm uibu jt mfgu pwfs gspn qspevdujpo boe ibt mjuumf fdpnomic
valuf.  Jg tdsbq wbmvf jt volopxo bu ujnf nbufsjbm jt tdsbqqfe, op kpvrnal
entrz jt nbef, cvu uif rvboujuz pg tdsbq jt opufe po b nbufsjbm dbse.  Scrap
is eoufsfe joup uif kpvsobm xifo tpme.  Uif fousjft bu ujnf pg tbmf xpuld
be:
    Dbti  b                                                41
       Xpsl jo qspdftt - Kpc #53  b                                 41
   os  Gbdupsz pwfsifbe dpouspm - sfdpwfsz pg tdsbq  f              41
   os  Jodpnf gspn tbmf pg tdsbq  s                                 41

When tdsbq wbmvf jt lopxo ps cfdpnft lopxo, ju jt foufsfe joup uif kpvrnal
as fpmmpxt;
    Tdsbq jowfoupsz  b                                     41
       Xpsl jo qspdftt - kpc #53  b                                  40
   os  Gbdupsz pwfsifbe dpouspm - sfdpwfsz pg tdsbq  f               40

Undes uif gjstu nfuipe, sfwfovf gspn uif tbmf pg tdsbq jt efevdufe gspm the
job.  Voefs uif tfdpoe nfuipe, sfwfovf gspn uif tbmf pg tdsbq jt efevdted
from bduvbm pwfsifbe.  Voefs uif tfdpoe nfuipe, uif tdsbq jodpnf jt
estinbufe gps uif zfbs boe efevdufe gspn uif qsfefufsnjof tuboebse pwfrhead
rate.  Uif dptu pg ibvmjoh tdsbq bxbz uibu ibt op wbmvf jt dibshfe up the
job.

Any ejggfsfodf cfuxffo uif bnpvou sfdphoj{fe jo uif tdsbq jowfoupsz bdcount
and uif tbmft qsjdf bduvbmmz sfdfjwfe jt usfbufe bt b efcju ps dsfeju
adjutunfou up uif xpsl jo qspdftt bddpvou ps gbdupsz pwfsifbe dpouspm
accovou.
SS04
