Adirondack Arrow Corporation

4/5/2004

Dear Team _____:

We have begun negotiations to buy 100% of Global Healthcare Exchange (GHX). We need for you to estimate the value of this enterprise.

The major risk factors that we see are:

a) the current investors will no longer favor GHX when they do not own it.

b) data standards in the industry may change the supply chain relationships between buyers and sellers.

c) giants in e-services such as Amazon may enter this business.

Identify any other risk factors that are present and their likelihood; project income and expense streams under different sets of assumptions; and compute a single expected present value of the company as of 6/1/2004. Show a spreadsheet analysis for each alternative that you evaluate.

Include an influence diagram for our GHX purchase decision.

Make your report as a powerpoint presentation and attach a bill at the customary rates.

Thank you,

Wintner Bluestone

Hutch Bump