HO27 Final_Exam_2009_-_Value_Model_Template

HO27 Final_Exam_2009_-_Value_Model_Template - Large...

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Large Instrument Manu Section 1 - Strategy Selection Strategy Strategy Name Continue Pre Strategy Descriptions 1 Continue Present Arrangement 1 2 Train UDC Engineers 2 3 Contract with IPX 3 4 Don't sell ROE-2 to UDC 4 Section 2 - Constants Description Units Value Name Model-related constants Real discount rate % 3% discount_rate Warranty period duration years 5 warranty_yrs Risk aversion coefficient dimensionless 0.0 gamma Utilitarian constants Thousand None 1,000 K Million None 1,000,000 M Section 3 - Uncertainties Description Units Index Repair cost uncertainties Avr repair cost, alpha failure $ thousand 2 Revenue uncertainties Training costs uncertainties
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Section 4 - Calculations Strategy NPV ($ thousand) Year 2007 2008 2009 Period 0 1 2 Number of machines sold units Sales revenue $ thousand 2,100.00 Repair costs Alpha failures repair cost $ thousand Beta failures repair cost $ thousand 168.00 Parts and servicing equipment
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HO27 Final_Exam_2009_-_Value_Model_Template - Large...

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