1. EGR 403 Team 1 Morteza Azarmnia Jaime Fregoso Zaw Myint Business Venture Analysis

2. Scenario $525k (out of pocket) Compare value after 10 years Start, Run, and Manage the business –choices: Availability of finance reports Franchise support in running the business

3. Denny’s Results Result at desired setting. Sensitivity on Sales, Rent, Labor, inflation

4. Hertz Results Result at 0% variation Sensitivity on Sales, Rent, Labor, inflation

5. Analysis PW Analysis: Comparing PW Hertz$1,060,407.98 Denny's$203,225.72 ROR Analysis: Denny’s IRR = 22.4 % Hertz IRR = 39.8 % Incremental IRR = 213 % Therefore we pick the higher initial cost choice which is Hertz.

6. Sensitivity Comparison Sensitivity: Rent Labor Sales Growth Inflation

7. Continued

8. References Hoover’s Handbook of American Business 1994, 2002, 2004, 2005 www.sec.gov Standard & Poor’s Register of Corporations Pratt’s Guide to Venture Capital Sources 1999 edition Current Denny’s Owner (interview) Newman, D.G, Essentials of Engineering Economic Analysis (Second Edition)2001