Assuming that Ideko's market share after 2005 will increase each year, the required production volume for the following five years are shown here: Ideko's production plant will require an expansion in 2010 (when roduction volume will exceed the current level by 50 %), and the cost of this expansion will be $15.3 million. Assuming the financing of the expansion will be delayed accordingly, calculate the projected interest payments and the amount of the projected interest tax shields (assuming that the interest rates on the term loans is 7.1 %) through 2010. Consider an income tax rate of 35 %. Ideko's balance sheet for 2005 is shown here.

(Round to the nearest $000)

Debt and Interest ($000)

Outstanding debt: 2005 ____, 2006 ______, 2007 _____, 2008 _____, 2009 ______, 2010 ______

Interest on Term Loan 7.1% 2005 ____, 2006 ______, 2007 ____, 2008 _____, 2009 _____, 2010 ______

Interest Tax Sheild 2005 _______, 2006 ____, 2007 ______, 2008 _____, 2009 ______, 2010 _______