Housing Affordability

Total Monthly Gross Income $ 6,500.00

Allowable Monthly Housing Expenditure $ 1,820.00 Max Percentage 28%

Total Non-Mortgage Housing Expenses $ 350.00
Affordable Monthly Mortgage Payment $ 1,470.00

Monthly Installment Debt $ 500.00

Total Affordable Monthly Debt Payments $ 1,490.00 Max Percentage 36%

Affordable Monthly Mortgage $ 1,470.00

Monthly Payment per $1000 mortgage $ 7.25

Maximum that can be borrowed $202,758.62

Down Payment 20%
What one can afford to spend on a house $253,448.28
Koehler Vision Associates

Appointments Taken 150 patients per week Appointments taken

Demand 150 140
No Show Rate 12% 141
142
Capacity 125 patients per week 143
144
Pre-screen Revenue $ 250.00 145
Nonrefundable processing fee $ 25.00 146
Overbooking Cost $ 125.00 147
148
SCHEDULED 150 149
SHOW UP 132 150
CANCELLATIONS 18
PRE-SCREENED 125
OVERBOOKED 7

REVENUES $ 31,700.00
COSTS $ 875.00
NET REVENUE $ 30,825.00
Revenue # Overbooked
$30,825.00 7
Digital Camera

Shutter Life 150000 clicks

Weddings Per Year 15

Photos per Wedding 2000

Average Weddings Per Camera 75.00

Camera Life in Years 5.00

Reder Electric Vehicles

REV-Sport
Selling Price $30,000.00
First Year Sales 60000.0
Variable Cost $22,000.00
Fixed Development Cost $75,000,000
Fixed Tooling and Manufacturing Cost $600,000,000

Financial Analysis

Year 1 Year 2 Year 3

First Year Sales 60000.0
Sales Volume Growth Rate - 6.00% 6.00%
Annual Sales 60000.0 63600.0 67416.0
Revenue $1,800,000,000 $1,908,000,000 $2,022,480,000
Total Variable Cost $1,320,000,000 $1,399,200,000 $1,483,152,000
Net Profit $480,000,000 $508,800,000 $539,328,000

Net Present Value $1,179,860,129.27

Difference (Sport - Touring) $106,002,014.59

REV should proceed with the Sport model

However if the variable cost increases to more than $22,457.19 (using Goal Seek), the difference is negative
so the company is taking a risk if the variable costs are uncertain.
 REV-Touring
Selling Price $28,000.00
First Year Sales 50000.0
Variable Cost $21,000.00

Financial Analysis

Year 4 Year 1 Year 2

First Year Sales 50000.0
6.00% Sales Volume Shrink Rate - 10.00%
71461.0 Sales Volume 50000.0 45000.0
$2,143,828,800 Revenue $1,400,000,000 $1,260,000,000
$1,572,141,120 Total Variable Cost $1,050,000,000 $945,000,000
$571,687,680 Net Profit $350,000,000 $315,000,000

Net Present Value $1,073,858,114.67

e difference is negative
Year 3 Year 4

10.00% 10.00%
40500.0 36450.0
$1,134,000,000 $1,020,600,000
$850,500,000 $765,450,000
$283,500,000 $255,150,000