Oxygen Generator-Presentation

9800 quote 5000unit fig1253 in pt quote 700unit quote

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Unformatted text preview: usiness Model Results: NPV over 5 year span= $2,800,000 Optimal β=.85 Price of unit $250,000 ROI for 1st year = 5200% Business Model Varying α (consumer knowledge) with Time Business Model Goals Now find knowledge/advertising as a function of time Assume full consumer knowledge within 2 years of high advertising. 1 alpha 0.8 0.6 high alpha med alpha 0.4 low alpha 0.2 0 0 1 2 3 4 5 6 Time (Years) 7 8 9 10 Business Model Work Completed: Vary alpha with time with optimal beta and price. Graphs to Plotted: – – – – Revenue versus Time Demand versus Time NPV versus Time ROI versus Time Demand v Time (varying alpha) 30 Demand (units) 25 20 15 10 5 0 0 1 2 3 4 5 Time (years) 6 7 8 9 10 Revenue v Time (Varying alpha) $7,000,000 $6,000,000 Revenue ($) $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 0 1 2 3 4 5 6 Time (years) 7 8 9 10 NPV v Time (varying alpha) $6,000,000 Net Present Value $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 0 1 2 3 4 5 6 Time (years) 7 8 9 10 ROI v Time (Varying Alpha) Return on Investment % 25000% 20000% 15000% 10000% 5000% 0% 0 1 2 3 4 5 6 Time (years)...
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