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Re: Pro-Life post# 38780

Sunday, 01/22/2017 10:45:27 AM

Sunday, January 22, 2017 10:45:27 AM

Post# of 73898
I am struggling trying to figure out how much revenue they expect to receive from a project and how the money works out.
Let me warn you I worked up these numbers over breakfast on a iPad. I'm sure we have people in this group that have much more experience than I do.
I would be curious as to your thoughts.
Let's say we have a customer that we are paying 5k a month on electricity.
We save them 20 percent. Sounds easy but have not researched it. $1000
We give them the 5 percent savings for 5 years. $250 month.

Cost of equipment and install is $30k I think this number is very reserved..
Cost CHRO for travel engineering etc to look at project. $5000.

So day one after install we have 35k invested.
30k is a 3rd party loan at 10 percent loan (fair)? Money is cheap right now but it still comes at a cost.
5k is Chro money.
We have $750 difference to cover the loan and 5 k Chro spent.
Loan interest a month $250
We clear average of $500 a month on one 5 year project.

Projects per year complete 52? One a week fair.
Year one profit $312,000.
This might cover a lawyer and back office support for the projects year 1.
Year 2-5 look much better but we are currently burn a million a year.




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