PPT Slide

.R&D expenses are financed by 80% debt, 20% investment capital.

.Debt from initial R&D is paid off in 10 years at 1/10th total initial debt/year.

.The "NASA in R&D" series assumes that R&D expenses are reduced by 60% by NASA support;

the remaining 40% is financed by 50% debt, 50% investment capital.

.Launch costs are $5,000/lb.

.The "E-Mag Launcher" series assumes a tenfold reduction in distribution (launch) costs.

The error bars are computed by doing a sensitivity analysis on five different variables:

.R&D Costs

.Gross Margin

.Distribution Costs

.Market Penetration

.Market Growth

These five variables were perturbed +/- 50% to see the overall effect on the company's value.

I then took the max positive and max negative change and used those values for the

error bars on the plot. The columns in the plot are the baseline estimated values.

I don’t yet know quite how to estimate the effect of an external-tank farm: converting the

external tanks to

usage as work space is a non-trivial issue.