Oxygen Generator-Presentation

Graphs to plotted revenue versus time demand versus

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Unformatted text preview: 7 8 9 10 Preliminary Risk Estimates of Oxygen Concentrator Risk Goal of this section is to predict profit if the scenario occurs that less consumers purchase the product. Consumer utility maximization could have predicted wrong. Copycats may enter market or oxygen prices may drop limiting market. Demand v Time (Varying Demand %) 30 100% of Expected Demand 50% of Expected Demand 25 Demand (units) 25% of Expected Demand 20 15 10 5 0 0 1 2 3 4 5 Time (years) 6 7 8 9 10 Revenue v Time (Varying Demand) $7,000,000 100% of Expected Demand 50% of Expected Demand 25% of Expected Demand $6,000,000 Revenue ($) $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 Demand) $7,000,000 100% of Expected Demand 50% of Expected Demand 25% of Expected Demand $6,000,000 NPV ($) $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 Demand) 30000% 100% of Expected Demand 25000% 50% of Expected Demand 20000% ROI % 25% of Expected Demand 15000% 10000% 5000% 0% 0 1 2 3 4 5 6 Time (years) 7 8 9 10 Conclusions The hospital project has been shown to be profitable even if demand is less than 75% than expected. NPV over 5 year span= $2,800,000 ROI over 1 year span = 5200% Future Work Research more into practical application of portable oxygen concentrators. Further studies on maximization of NPV, ROI, and hospital preferences. More in-depth analysis of risk and consumer/competitor reaction estimation. Business Model Preliminary Financial Analysis T otal Cost per 5 Year T otal Savings for 5 Years Average Savings per Year Concentrator $500,000 $350,000 $70,000 Liquid Oxygen $850,000 Final Conclusions It is now possible to deliver 99% oxygen to patients in a hospital, and to those who want to enjoy a life without the restriction of bulky liquid oxygen bottles. Final Conclusions This technology would change the lives of millions of patients and those needing oxygen around the world for years to come. Questions?...
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