1. Airplane Recovery Parts and Service Finance 3000 Jonathan Romines and Jonathan Meredith

2. The Aviation Industry Multi-billion Dollar Industry Small Profit Margins Heavily Dependent Upon Operation Of Aircraft Importance Of Time Broken Aircraft

3. Services Provided By Aircraft Recovery Parts and Service Locate Parts Which Are Needed Delivery Of Parts Within 24 Hours Guarantee Parts From Defect

4. Current Operation Operate out of Memphis Use FedEx Overnight service on many deliveries Use our own aircraft to pick-up and deliver many parts

5. Our Problem Competition in Texas Lost Accounts Now Dependent On Accounts In Illinois

6. Our Solutions Project A Purchase new Aircraft to provide better service to our accounts Initial investment of $1,000,000 plus $50,000 for modifications Project B Open a new warehouse in Illinois to increase our service area Initial investment of $10,000,000 for parts plus $50,000 for lease (10 yrs.)

10. Weighted Average Cost of Capital WACC = WD KD + WCS KCS WACC to $5 Million = 6.50 % Where… W D = 0.5W CS = 0.5 K D = 5 % K CS = 8 % WACC to $10 Million = 7.66% Where… W D = 0.33W CS = 0.67 K D = 10 %K CS = 6.5 %

11. Net Present Value and Internal Rate of Return Calculations Project A Project B Year 0(1,050,000) (10,050,000) Year 1 178,500 1,750,000 Year 2 178,500 1,750,000 Year 3 178,500 1,750,000 Year 4 178,500 1,750,000 Year 5 198,500 1,750,000 Year 6 198,500 1,750,000 Year 7 198,500 1,750,000 Year 8 198,500 2,000,000 Year 9 218,500 2,000,000 Year 10 218,500 2,000,000 Net Present Value $192,058.05 665,337.94 Internal Rate of Return 18.29% 6.62%