The Best Option: A Combination
Revenue Bond at 2.7 million and Addditional Sources of Funding
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Change in Revenues 860,000 860,000 860,000 860,000 860,000 810,000 810,000 810,000 810,000 810,000 810,000 810,000 810,000 810,000 810,000 810,000 810,000 810,000 810,000 810,000
Change in Operating Costs 476,550 476,550 476,550 476,550 476,550 476,550 476,550 476,550 476,550 476,550 476,550 476,550 476,550 476,550 476,550 476,550 476,550 476,550 476,550 476,550
Change in Depreciation 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000
Change in Costs 611,550 611,550 611,550 611,550 611,550 611,550 611,550 611,550 611,550 611,550 611,550 611,550 611,550 611,550 611,550 611,550 611,550 611,550 611,550 611,550
NPV $3,473,442.10
Cost of Revenue Bond 2,700,00.00
Profit after 20 years $773,442.10
Summary of Revenue: Daily Admission $720,000
Special Groups $7,500
Pepsi Rights $20,000
Concessions $40,000
Retail Shop $7,500
Higher Attendence Sample Analysis
Attendance at 150,000 (100,000 children: 50,000 adults)
Revenue Bond at 8% Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Change in Revenues 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000
Change in Operating Costs 588,885 588,885 588,885 588,885 588,885 588,885 588,885 588,885 588,885 588,885 588,885 588,885 588,885 588,885 588,885 588,885 588,885 588,885 588,885 588,885
Change in Depreciation 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000
Change in Operating Costs 773,855 773,855 773,855 773,855 773,855 773,855 773,855 773,855 773,855 773,855 773,855 773,855 773,855 773,855 773,855 773,855 773,855 773,855 773,855 773,855
NPV 109,422.00 3,700,000 -3,590,578.00
General Obligation Bond at 7.5%
Add: Depreciation 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000 185,000
Net Cash Flow 388,000 388,000 388,000 388,000 388,000 388,000 388,000 388,000 388,000 388,000 388,000 388,000 388,000 388,000 388,000 388,000 388,000 388,000 388,000 388,000
0.9303 0.8654 0.8051 0.749 0.6968 0.6483 0.6031 0.5612 0.522 0.4858 0.452 0.4205 0.3914 0.3642 0.3388 0.3153 0.2935 0.2731 0.2541 0.2365
Present Value of CF 360,956 335,775 312,379 296,012 270,358 251,540 234,003 217,746 202,536 188,490 175,376 163,154 151,863 141,310 131,454 122,366 113,878 105,963 98,591 91,762
BREAK EVEN ANALYSIS
Revenue Bond at 8% Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Change in Revenues 588,855$ 588,855$ 588,855$ 588,855$ 588,855$ 588,855$ 588,855$ 588,855$ 588,855$ 588,855$ 588,855$ 588,855$ 588,855$ 588,855$ 588,855$ 588,855$ 588,855$ 588,855$ 588,855$ 588,855$
Change in Operating Costs
NPV 1,816,330$ 3,700,000$ #########
General Obligation
Bond at 7.5%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Change in Revenues 212,004.00 212,004.00 212,004.00 212,004.00 212,004.00 ######### 212,004.00 212,004.00 212,004.00 212,004.00 212,004.00 212,004.00 212,004.00 212,004.00 212,004.00 ######### ######### ######### ######### 212,004.00
Change in Operating Costs
212,000$ 212,000$ 212,000$ 212,000$ 212,000$ 212,000$ 212,000$ 212,000$ 212,000$ 212,000$ 212,000$ 212,000$ 212,000$ 212,000$ 212,000$ 212,000$ 212,000$ 212,000$ 212,000$ 212,000$