Exhibit 1

Preliminary Profitability Estimates

Syrup Capacity Expansion

Sales (100,000 barrels at $100) $10,000,000

Cash Expenses
Cost of goods sold (100,000 barrels at $58.00) $5,800,000
Building lease $325,000
Marketing expenses $253,000
Other expenses $300,000
Total expenses $6,678,000
Contribution to Profit $3,322,000

Equipment Required
New Equipment to be purchased $1,275,000
Old Equipment to be moved (Book Value) $15,000
Cost of moving and installation $25,000
Total Capital cost $1,315,000

Payback Period 0.40

Exhibit 2
Estimated Sales and Marketing Expenses

Annual Sales
Barrels Revenues
Status quo 50,000.00 $5,000,000
New Facility
Year 1 60,000.00 $6,000,000
Year 2 75,000.00 $7,500,000
Year 3 and after 100,000.00 $10,000,000
Production Cost Estimates
Variable cost per Annual Fixed Costs
barrel Lease Depreciation
Status quo $60.00 $100,000.00 $5,000.00
New Facility
Year 1 $59.50 $325,000.00 $131,500.00
Year 2 $58.50 $325,000.00 $131,500.00
Year 3 and after $58.00 $325,000.00 $131,500.00
Years 4-5 $58.00 $325,000.00 $131,500.00
 Annual Marketing
Expenses
$87,500

$287,500.00
$287,000.00
$253,000.00

nnual Fixed Costs

Other
$50,000.00

$300,000.00
$300,000.00
$300,000.00
$300,000.00
Allied Sugar Company - Submitted by 19010025
Salvage Value of Plant $ 500,000.00
WACC 15%
Tax 40%

New Plant Site 0 1 2 3

Sales Price $ 100.00 $ 100.00 $ 100.00

Variable cost per barrel $ 59.50 $ 58.50 $ 58.00
Units sold 60,000.00 75,000.00 100,000.00
Total Sales $ 6,000,000.00 $ 7,500,000.00 $ 10,000,000.00
COGS $ 3,570,000.00 $ 4,387,500.00 $ 5,800,000.00
Gross Margin $ 2,430,000.00 $ 3,112,500.00 $ 4,200,000.00
Marketing Expenses $ 287,500.00 $ 287,000.00 $ 253,000.00
Lease $ 325,000.00 $ 325,000.00 $ 325,000.00
Old Equipment Book Value $ 15,000.00
Cost of dismantling old equipment $ 25,000.00
Old Equipment Depreciation $ 5,000.00 $ 5,000.00 $ 5,000.00
Purchase of New Equipment $ 1,275,000.00
New Equipment Starting Value $ 1,275,000.00 $ 1,020,000.00 $ 693,600.00
New Equipment Depreciation Rate 20% 32% 19%
New Equipment Depreciation $ 255,000.00 $ 326,400.00 $ 131,784.00
New Equipment Ending Value $ 1,020,000.00 $ 693,600.00 $ 561,816.00
Total Depreciation $ 260,000.00 $ 331,400.00 $ 136,784.00
Other $ 300,000.00 $ 300,000.00 $ 300,000.00
EBIT $ (1,315,000.00) $ 1,257,500.00 $ 1,869,100.00 $ 3,185,216.00
Tax $ - $ 503,000.00 $ 747,640.00 $ 1,274,086.40
EBIAT $ - $ 754,500.00 $ 1,121,460.00 $ 1,911,129.60
Add Back Depreciation $ - $ 260,000.00 $ 331,400.00 $ 136,784.00
Capex $ 420,000.00 $ 725,000.00 $ 1,040,000.00 $ 1,341,000.00
Net Working Capital Expenditure $ (305,000.00) $ (315,000.00) $ (301,000.00)
Salvage Value After Tax
Cash Flow $ (1,315,000.00) $ 709,500.00 $ 1,137,860.00 $ 1,746,913.60
Old Plant Site 0 1 2 3

Sales Price $ 100.00 $ 100.00 $ 100.00

Variable cost per barrel $ 60.00 $ 60.00 $ 60.00
Units sold 50,000.00 50,000.00 50,000.00
Total Sales $ 5,000,000.00 $ 5,000,000.00 $ 5,000,000.00
COGS $ 3,000,000.00 $ 3,000,000.00 $ 3,000,000.00
Gross Margin $ 2,000,000.00 $ 2,000,000.00 $ 2,000,000.00
Marketing Expenses $ 87,500.00 $ 87,500.00 $ 87,500.00
Lease $ 100,000.00 $ 100,000.00 $ 100,000.00
Total Depreciation $ 5,000.00 $ 5,000.00 $ 5,000.00
Other $ 50,000.00 $ 50,000.00 $ 50,000.00
Operating Income $ 1,757,500.00 $ 1,757,500.00 $ 1,757,500.00
Tax $ 703,000.00 $ 703,000.00 $ 703,000.00
EBIAT $ 1,054,500.00 $ 1,054,500.00 $ 1,054,500.00
Add Back Depreciation $ 5,000.00 $ 5,000.00 $ 5,000.00
Cash Flow $ 1,059,500.00 $ 1,059,500.00 $ 1,059,500.00

Incremental Cash Flows 0 1 2 3

Difference in Cash Flows $ (1,315,000.00) $ (350,000.00) $ 78,360.00 $ 687,413.60
Cumulative Cash Flow $ (1,315,000.00) $ (1,665,000.00) $ (1,586,640.00) $ (899,226.40)
Discounted Cash Flows $ (1,315,000.00) $ (304,347.83) $ 59,251.42 $ 451,985.60
Cumulative Discounted Cash Flows $ (1,315,000.00) $ (1,619,347.83) $ (1,560,096.41) $ (1,108,110.81)

NPV $ 784,477.33
IRR 28%
Payback 3.39
Discounted Payback 3.84
 4 5

$ 100.00 $ 100.00
$ 58.00 $ 58.00
100,000.00 100,000.00
$ 10,000,000.00 $ 10,000,000.00
$ 5,800,000.00 $ 5,800,000.00
$ 4,200,000.00 $ 4,200,000.00
$ 253,000.00 $ 253,000.00
$ 325,000.00 $ 325,000.00

$ - $ -

$ 561,816.00 $ 494,398.08
12% 11%
$ 67,417.92 $ 54,383.79
$ 494,398.08 $ 440,014.29
$ 67,417.92 $ 54,383.79
$ 300,000.00 $ 300,000.00
$ 3,254,582.08 $ 3,267,616.21
$ 1,301,832.83 $ 1,307,046.48
$ 1,952,749.25 $ 1,960,569.73
$ 67,417.92 $ 54,383.79
$ 1,341,000.00 $ -
$ 200,000.00
$ 3,361,167.17 $ 2,214,953.52
 4 5

$ 100.00 $ 100.00
$ 60.00 $ 60.00
50,000.00 50,000.00
$ 5,000,000.00 $ 5,000,000.00
$ 3,000,000.00 $ 3,000,000.00
$ 2,000,000.00 $ 2,000,000.00
$ 87,500.00 $ 87,500.00
$ 100,000.00 $ 100,000.00

$ 50,000.00 $ 50,000.00
$ 1,762,500.00 $ 1,762,500.00
$ 705,000.00 $ 705,000.00
$ 1,057,500.00 $ 1,057,500.00
$ - $ -
$ 1,057,500.00 $ 1,057,500.00

4 5
$ 2,303,667.17 $ 1,157,453.52
$ 1,404,440.77 $ 2,561,894.28
$ 1,317,129.18 $ 575,458.96
$ 209,018.37 $ 784,477.33