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EGR 403 Team 1

EGR 403 Team 1. Morteza Azarmnia Jaime Fregoso Zaw Myint. Business Venture Analysis. Scenario. $525k (out of pocket) Compare value after 10 years Start, Run, and Manage the business choices: Availability of finance reports Franchise support in running the business. Denny’s Results.

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EGR 403 Team 1

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  1. EGR 403 Team 1 Morteza Azarmnia Jaime Fregoso Zaw Myint Business Venture Analysis

  2. Scenario • $525k (out of pocket) • Compare value after 10 years • Start, Run, and Manage the business • choices: • Availability of finance reports • Franchise support in running the business

  3. Denny’s Results • Result at desired setting. • Sensitivity on Sales, Rent, Labor, inflation

  4. Hertz Results • Result at 0% variation • Sensitivity on Sales, Rent, Labor, inflation

  5. Analysis PW Analysis: ROR Analysis: Denny’s IRR = 22.4 % Hertz IRR = 39.8 % Incremental IRR = 213 % Therefore we pick the higher initial cost choice which is Hertz.

  6. Sensitivity Comparison Sensitivity: Rent Labor Sales Growth Inflation

  7. Continued

  8. References • Hoover’s Handbook of American Business 1994, 2002, 2004, 2005 • www.sec.gov • Standard & Poor’s Register of Corporations • Pratt’s Guide to Venture Capital Sources 1999 edition • Current Denny’s Owner (interview) • Newman, D.G, Essentials of Engineering Economic Analysis (Second Edition)2001

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