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Required Capital & Financing
Total Capital Costs 776,000
Bank debt 500,000
Equity 300,000
Total 800,000
Debt/Equity Ratio 62%
Break-even
1 2 3 4 50
20
40
60
80
100
120
75
90
104 107 109
7161
54 53 52
Gym Membership Breakeven
Year
Nu
mb
er
of
Me
m-
be
rsh
ips p
er
Ye
ar
1 2 3 4 50.02.04.06.08.0
10.012.014.016.018.0
8.0
12.0
15.6 16.1 16.4
7.5 7.5 7.0 6.8 6.6
Physiotherapy Breakeven
Year
Nu
mb
er
of
Cu
sto
me
rs p
er
Da
y
Owner Compensation
2015 2016 2017 2018 2019
Dividends 0 0 $86,762 $181,172 $196,891
Individual Compensation
0 0 $28,921 $60,391 $65,630
Total Individual Compensation
$154,942
• Net payback $1,251,228• IRR 49.1%
Risk Factors
Number of Physiotherapy Customers/Day
Customers/Day Average 5 year Profit Net Payback IRR
5 (-37%) $32,356 $178,249 10.0%
6 (-25%) $68,663 $539,869 25.7%
8 $140,291 $1,251,228 49.1%
10 (25%) $211,888 $1,962,436 68.1%
11 (38%) $247,687 $2,318,040 76.7%
Sensitivity Analysis
Gym Memberships
Memberships/year Average 5 year Profit Net Payback IRR
68 (-10%) $136,400 $1,213,830 48.0%
71 (-5%) $138,068 $1,229,858 48.5%
75 $140,291 $1,251,228 49.1%
78 (5%) $141,958 $1,267,256 49.6%
82 (10%) $144,181 $1,288,627 50.3%
Physiotherapy
Customers/Day Average 5 year Profit Net Payback IRR
5 (-37%) $32,356 $178,249 10.0% Not Feasible
6 (-25%) $68,663 $539,869 25.7% Feasible (but barely)
8 $140,291 $1,251,228 49.1% Feasible
10 (25%) $211,888 $1,962,436 68.1% Definitely do it
11 (38%) $247,687 $2,318,040 76.7% Definitely do it