APPENDIX (B)
[hline]

The Costs

HARD GOODS:

        The Vessel, furnished to live aboard. . . . . . US$230,000
        The FWD Vehicle . . . . . . . . . . . . . . . . . . 35,000
        The Small 4-Wheel ATV . . . . . . . . . . . . . . . .4,000
        The Computer Suite
           3 CPUs . . . . . . . . . .$21,000
           1 LAN. . . . . . . . . . . .5,000
           1 Scanner. . . . . . . . . .2,000
           & Programs . . . . . . . . .1,500
           & Misc.. . . . . . . . . . .1,000. . . . . . . . 30,000
        The Sounder Equipment
           4 Transducers. . . . . . .$12,000
           2 Processors . . . . . . . .8,000
           2 Viewers. . . . . . . . . .4,000
           2 Printers . . . . . . . . .9,000
           1 Transmitter. . . . . . . .4,000. . . . . . . . 37,000
        The Video Equipment
           3 Camcorders . . . . . . .$18,000
           1 Editor . . . . . . . . . 12,000
           1 Portable Microwave
             Transponder. . . . . . . 15,000
           1 Minidisk Satellite
             Transceiver. . . . . . . 18,000. . . . . . . . 63,000    
    Portable Shelters (Canvas goods & c.) . . . . . . . . . .6,000

                                            Subtotal. . . . . . .US$405.000



SOFT GOODS:

        Consultations
           Kent Weeks(1st yr.). . . .$40,000                          
           Kent Weeks(2nd yr.). . . . 20,000
           Lambert Dolphin. . . . . . .5,000
           Vincent Murphy . . . . . . .5,000
           Marine Design. . . . . . . 14,000. . . . . . . . 84,000

        Salaries
           2 Fulltime (annually). . .$50,000
           2 Part time. . . . . . . . 30,000. . . . . . . . 80,000
        2nd year. . . . . . . . . . . . . . . . . . . . . . 80,000

        Personnel Expenses
           Travel . . . . . . . . . . 18,000
           Necessities. . . . . . . . 20,000
           Fuel . . . . . . . . . . . .5,000
           Satellite time . . . . . . .5,000. . . . . . . . 48,000
        2nd Year. . . . . . . . . . . . . . . . . . . . . . 48,000

                                            Subtotal. . . . . . .US$336,000

           Total Costs. . . . . . . . . . . US$741,000



THE RETURNS

o    Assume the cost of the vessel is 80% recoverable after two years.
o    Assume the costs of the other capital goods are 50% recoverable after two
     years.
o    Assume no recovery on small capital goods such as canvas.
o    Assume $50,000 in TV sales first year, double that the second.
o    Assume 25% Royalties on all media sales.


Hard Goods

    The Vessel. . . . . . . . . . . . . . . . . . . . . US$180,000
    The FWD Vehicle . . . . . . . . . . . . . . . . . . . . 17,500
    Small 4-Wheel ATV . . . . . . . . . . . . . . . . . . . .2,000
    The Computer Suite. . . . . . . . . . . . . . . . . . . 15,000
    The Video Equipment . . . . . . . . . . . . . . . . . . 15,000
    The Sounder Equipment . . . . . . . . . . . . . . . . . 18,000

                                            Subtotal. . . . . . .US$247,500

Soft Goods

    TV Sales. . . . . . . . . . . . . . . . . . . . . . . $150,000
    TV Royalties. . . . . . . . . . . . . . . . . . . . . .400,000

                                            Subtotal. . . . . . .US$450,000

           Total Returns. . . . . . . . . . . . . . . . US$797,500


                                   THE NET COSTS

Total Costs . . . . . . . . . . . . . . . . . . . . . . . . . . .US$741,000

Total Returns . . . . . . . . . . . . . . . . . . . . . . . . . .797,000

Net Result (surplus). . . . . . . . . . . . . . . . . . . . . . .$56,000

                      We will need to negotiate media rights
                        before we conclude this agreement.
[hline]

Previous. - Home page. - Information.