Go Through The Entire Workbook, Sheet By Sheet and Enter Data Using The Following Rules:

- You Must Enter Data In The Light Green Boxes

- You Can Enter Data (or Replace Data) In The Light Yellow Boxes

- The Fields With No Shading Are Automatically Calculated - DO NOT ENTER DATA!

Select Boxes with a Triangle in the corner

to read comments describing the
contents to be entered into the box, or
describing the meaning of the box.

If You Don't Know An Exact Value For A Field Put In Your Best
Estimate, Then Let The Customer Update It If Necessary
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Financial Inputs
Robotic System Investment $160,000

(Total system price including all robots, peripheral equipment,

controls, engineering, build, set-up & run-off at FANUC
Robotics, and installation supervision at end users)

Plant Startup Expenses (if not included in Robotic System Investment)

Installation $5,000
Robotic Systems Training $0
Internal Labor for Startup and Debug $2,500
Production Support/Service Contracts $0

Combined State and Federal Income Tax Rate 35.0%

Corporate Hurdle Rate for Investment Decisions 33.0%

Capital Evaluation Duration In Years (Enter "5" or "7") 5

Corporate Discount Factor / Weighted Average Cost of Capital 6.0%

Corporate Payback Period (Months) for this Application 24

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Labor Savings
Current Number of Laborers per Shift: 2
Operators 1
Maintenance 0
Technicians 0
Material Handlers 1

Robotic System Number of Laborers per Shift: 1

Operators 0
Maintenance 0
Technicians 0
Material Handlers 1

Number of Shifts: 2

Annual Hours Per Laborer 2,000

Production Hours Per Day 8
Production Days Per Week 5
Production Weeks Per Year 50

Current Annual Labor Hours: 8,000

Robotic System Annual Labor Hours: 4,000
Annual Labor Savings (Hours): 4,000

Burdened Hourly Rate for Laborers:

Operators $20.00
Maintenance $0.00
Technicians $0.00
Material Handlers $20.00

Current Annual Labor Cost: $160,000

Robotic System Annual Labor Cost: $80,000
Annual Labor Savings (Dollars): $80,000

Annual Lost Time and Disability Savings: $4,000

Annual Average Percentage Rate: 5%

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Preventive Maintenance (PM) Labor Cost

Total Additional Number of PM Personnel Assigned: 0

Burdened Hourly Rate for PM: $0.00

Number of proposed FANUC Robots In System: 0

Proposed PM Man-Hours per Year 0

Number of Robots * 4 Hrs. per Quarter * 4-Quarters 0
Yearly Peripheral Equipment Estimate 0

Annual PM Labor Savings: $0

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Production Increase
Current Systems Annual Production 228,000
Production Rate Per Hour 60.0
Total Available Production Hours Per Year 4,000
Less Daily Scheduled Downtime (lunches, breaks, etc. - hrs) 0
Less Annual Unscheduled Downtime (avg. percentage) 5.0% (200)
Less Annual Change-Over (hours) 0
Net Annual Production Hours 3,800

FANUC Robotics Proposed Systems Annual Production 280,000

Production Rate Per Hour 70.0
Total Available Production Hours Per Year 4,000
Less Daily Scheduled Downtime (lunches, breaks, etc. - hrs) 0.00 0
Less Annual Unscheduled Downtime (avg. percentage) 0.0% 0
Less Annual Change-Over (hours) 0
Net Annual Production Hours 4,000

Increased Annual Production 52,000

Price Per Unit $25.00

Increased Annual Revenue $1,300,000

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Scrap Reduction Savings

Current Systems Annual Scrap 38
Scrap Rate 1.0%
Net Annual Production Hours (Current System) 3,800

FANUC Robotics Proposed Systems Annual Production 20

Scrap Rate 0.5%
Net Annual Production Hours (FANUC Robotics System) 4,000

Increased Annual Production 18

Price Per Unit $25.00

Scrap Reduction Savings $450

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Miscellaneous Saving
This Sheet To Be Used For Unique Savings Opportunities Specific To Your Application (Modify As Required)

Miscellaneous Saving #1 $0

Miscellaneous Saving #1 $0

Miscellaneous Saving #1 $0

Total Miscellaneous Savings $0

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Annual Savings Summary

Operator Labor Savings : $80,000

Lost Time and Disability Savings : $4,000

Workers Compensation Premiums ($1.3 per $100 of payroll) $1,040

System Preventive Maintenance: $0

Production Increase Value: $1,300,000

Scrap Reduction Savings: $450

Miscellaneous Savings: $0

Total Annual Profit Increase: $1,385,490

Proposal 10xxxx Page 7 of 9 12/16/2010 - 15:27:24

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Investment Summary
Total Initial Investment: $167,500
Total Annual Profit Increase (Before Income Taxes): $1,385,490
Weighted Average Cost of Capital / Discount Factor: 6.0%
Corporate Hurdle Rate: 33.0%

5 Year IRR Generated From Project: 544.6%

(True Interest Return Generated by the Project)
(If IRR > Hurdle Rate, Accept the Project)
(If IRR < Hurdle Rate, Reject the Project)

5 Year NPV: $3,675,412

(Present Value of Net Annual Cash Flows)
(IF NPV > $0, Accept the Project)
(IF NPV < $0, Reject the Project)

Payback In Months (Before Income Taxes): 1.5

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Today (Year 0) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

5 Year (-) (167,500) 0
7 Year (-) 0 0
Total Equipment Investment (167,500) 0 0 0 0 0 0 0
Cash Flow Data:
Operator Labor Savings 80,000 80,000 80,000 80,000 80,000 80,000 80,000
Annual lost time and disability savings 4,000 4,000 4,000 4,000 4,000 4,000 4,000
Workers Comp Premiums 1,040 1,040 1,040 1,040 1,040 1,040 1,040
System Preventive Maintenance 0 0 0 0 0 0 0
Increased Annual Revenue (Production Increase) 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000
Scrap Savings 450 450 450 450 450 450 450
Miscellaneous Savings 0 0 0 0 0 0 0
Equipment Depreciation (-) (33,500) (33,500) (33,500) (33,500) (33,500) 0 0
Net Pre-Tax Profit: 1,351,990 1,351,990 1,351,990 1,351,990 1,351,990 1,385,490 1,385,490

Income Taxes @ 35.0% (473,197) (473,197) (473,197) (473,197) (473,197) (484,922) (484,922)
Add Depreciation (+) 33,500 33,500 33,500 33,500 33,500 0 0
Net Annual Cash Flow (after tax): (167,500) 912,294 912,294 912,294 912,294 912,294 900,569 900,569

Cumulative Cash Flow: (167,500) 744,794 1,657,087 2,569,381 3,481,674 4,393,968 5,294,536 6,195,105
Weighted Average Cost of Capital6.0%
@ 1.00000 0.94340 0.89000 0.83962 0.79209 0.74726 0.70496 0.66506
Present Value of Annual Cash Flows(167,500) 860,654 811,938 765,979 722,622 681,719 634,865 598,929
Cumulative Discount Cash Flow (167,500) 693,154 1,505,092 2,271,071 2,993,693 3,675,412 4,310,277 4,909,207

Time Period NPV IRR

5 Years ### 544.6%
7 Years ### 544.7%
0.18 Years After Tax Payback

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Financial Analysis
(continued)

NOT FOR CUSTOMER PRESENTATION

Payback 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Calculation Detail: 0.1836 0.00 0.00 0.00 0.00 0.00 0.00

Formula Checks: 0
(Should = 0 ) 0
0
0

IRR 7YR Err:523 5.0816

GUESS 0.50 0.50

Depreciation Rates: 0.2000 0.2000 0.2000 0.2000 0.2000 0.0000 0.0000 0.0000
(Straight-Line - Change if Applicable)

Formula
Checker
Should = 0
Deprec. Deprec. Deprec. Deprec. Deprec. Deprec. Deprec.
Investment Year 1 (33,500) (33,500) (33,500) (33,500) (33,500) 0 0 0.0000
Investment Year 2 0 0 0 0 0 0 0.0000
Investment Year 3 0 0 0 0 0 0.0000
Investment Year 4 0 0 0 0 0.0000
Investment Year 5 0 0 0 0.0000
Investment Year 6 0 0 0.0000
Investment Year 7 0 0.0000

Total Depreciation (33,500) (33,500) (33,500) (33,500) (33,500) 0 0

Inflation Factors
Enter Rate 0.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Proposal 10xxx Page 9 of 9

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