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Looper's Delight
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Here's my guess for 300 sold/month (assume $400 sales cost):
Assume 30% discount rate
Year | Revenue | Revenue | After-tax | After-tax | PV Earnings
| Growth | | Margin | Profit |
1 0% 1.4M 10% 140,000
$107,700
2 10% 1.54M 10% 154,000
$91,124
3 10% 1.69M 10% 169,000
$76,923
4 10% 1.86M 10% 186,000
$65,123
5 10% 2.05M 10% 205,000 $55,212
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Total present value of earnings:
$396,082
Terminal Value:
+ $75,000
What You Should Pay For EDP Factory: $471,082
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This assumes that (1) that you're pretty confident of selling 300 units per
month,
(2) you think the EDP can hold off competition for the next 5 years and
sustain 10%
growth. I think the terminal value is pretty close for sales assumptions
and market conditions
down the digital road.
So, if just 20 of us chip in for about the price of a new car, we can OWN
Echoplex! We'd probably
get a free one, or at least a good discount!!
Tom
ths@interaccess.com
At 08:05 PM 5/27/99 -0700, you wrote:
>Made you look!
>
>Really, though...
>
>I'm curious how much one would have to pay for
>the whole enchilada? i.e. How much for all the
>rights to an old effects processor that no one is
>currently producing? Any guesses? And how much
>to tool up to produce 2-3 hundred a month?
>
>Randy Jones
>_________________________________________________________
>Do You Yahoo!?
>Get your free @yahoo.com address at http://mail.yahoo.com
>
>