Case Study 8 - 0 1 2 3 4 5 6 7 8 9 10 Sum ROR Comparison...

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Years Remove Rebuild Contract Rebuild Operations Maintain Status Quo and Sel Out After 5 years Trade Out Lease Arrangment Initial Investment ($750,000) Initial Investment ($400,000) Initial Investment 0 Initial Investment ($1,000,000) Initial Investment ($1,500,000) Final Cost Annual Expenses Annual Revenue Final Cost Anuual Expenses Annual Revenue Final Cost Anuual Expenses Annual Revenue Final Cost Anuual Expenses Annual Revenue Final Cost Anuual Expenses Annual Revenue 0 - ($800,000) $1,000,000.00 - ($1,400,000) $1,400,000.00 - ($1,250,000) $1,150,000.00 - ($3,000,000) $3,500,000.00 - ($500,000) $1,000,000 1 - ($848,000) $1,040,000.00 - ($2,800,000) $1,470,000.00 - ($2,500,000) $2,300,000.00 - ($6,000,000) $7,000,000.00 - ($1,000,000) $2,000,000 2 - ($898,880) $1,081,600.00 - ($4,200,000) $1,543,500.00 - ($3,750,000) $3,450,000.00 - ($9,000,000) $10,500,000.00 - ($1,500,000) $3,000,000 3 - ($952,813) $1,124,864.00 - ($5,600,000) $1,620,675.00 - ($5,000,000) $4,600,000.00 - ($12,000,000) $14,000,000.00 - ($2,000,000) $4,000,000 4 - ($1,009,982) $1,169,858.56 - ($7,000,000) $1,701,708.75 - ($6,250,000) $5,750,000.00 - ($15,000,000) $17,500,000.00 - ($2,500,000) $5,000,000 5 - ($1,070,580) $1,216,652.90 - ($8,400,000) $1,786,794.19 - ($7,500,000) $6,900,000.00 - ($18,000,000) $21,000,000.00 - ($3,000,000) $6,000,000 6 - ($1,134,815) $1,265,319.02 - ($9,800,000) $1,876,133.90 - - $9,400,000.00 - ($21,000,000) $24,500,000.00 - ($3,500,000) $7,000,000 7 - ($1,202,904) $1,315,931.78 - ($11,200,000) $1,969,940.59 - - $9,900,000.00 - ($24,000,000) $28,000,000.00 - ($4,000,000)
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This note was uploaded on 10/19/2011 for the course MECH 370 taught by Professor Smith during the Spring '11 term at Alfred University.

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