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Worked with professional equestrian managementconsultantsto set parameters <br />for the models <br />Four scenarios of the model were developed;they differed as to assumptions of growth <br />rates of:numbers and types of shows,entries,revenues,and costs.In Scenario 3, <br />which we believe will be the most likely scenario,the park operatesat an eighty <br />thousand dollar per year loss,despite assuming augmentedrevenues of $100,000 per <br />year from non-equestrianevents.Scenario 2,which assumesa much higher and likely <br />unrealisticrate of facility use,results in net revenues of approximatelyone hundred fifty <br />thousand dollars per year.The key financial findings of these two scenarios are: <br />*Maximum use of the facility is reached in the sixth year.Scenario 2 breaks <br />even in the sixth year. <br />*Accumulationof 1.4 million dollars in losses by the end of the tenth year in <br />Scenario 3.Scenario 2 accumulates one million dollars in losses prior to <br />break-even. <br />*Net revenueslosses of $74,726 when the facility reaches maturity in year six <br />for Scenario 3.Scenario 2 projects net revenues at maturity in year seven of <br />$140,802. <br />*For Scenario 3,annual revenues at maturity will be $549,316 and annual <br />expenseswill be $724,042.For Scenario 2 these values are respectively: <br />$915,527 and $774,725. <br />*69,357 exhibitors and spectators will use the facility annually when the facility is <br />at maturity. <br />4