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Worked with professional equestrian managament consultants to 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 operates at an eighty <br />thousand dollar per year loss, despite assuming augmented revenues of $100,000 per <br />year from non-equestrian events. Scenario 2, which assumes a much higher and likely <br />unrealistic rate of facility use, results in net revenues of approximately one hundred fifty <br />thousand dollars per year. The key financial findings of thes .e 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 />• Accumulation of 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 revenues losses 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 />expenses will be $724,042. For Scenario 2 these values are resp~ctlvely: <br />$915,527 and $774,725. <br />• 69,35~ exhibitors and spectators will use the facility annually when the facility is <br />at maturity. <br />4