Figure 12
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Based on the initial capital requirements identified in subsection 7.5, a two-step investment process appears feasible and appropriate. During the first year (year 1) a total investment of $330,000 would be sought. In exchange for this investment the Company would offer 171,372 units of ownership at a price of $1.93/unit. During the second year (year 2) an additional $920,000 in investment capital would be sought. In exchange for this investment the Company would offer 257,199 units of ownership at a price of $3.58/unit. The projected returns on investment (after six years) for these investments are given in Table 6 and Figure 10, based on the four market penetration rates previously noted.
Table 6. Projected Return On Investment (After Six Years) Year 1 2 Investment $ 330,000 $ 920,000 Units Purchased 171,372 257,199 Unit Price ($/Unit) 1.93 3.58 Company Ownership (%) Year 1 14.63 ----- Year 2+ 12.0 18.0 Annual Rate of Return (%) 5% Market Penetration 29.7 24.8 10% Market Penetration 49.0 44.7 15% Market Penetration 60.1 57.0 20% Market Penetration 68.1 66.3
Figure 12
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