STable Money Makers
Stable Money Makers - Alpaca Business
Betty Parks, a 49 year old building code auditor, became frustrated as she watched her retirement investment in a 401K move in the wrong direction. Specifically, Betty lost approximately 50% of her investment in the 401K, she had planned to use for retirement. After three years of research, Betty decided to make an unconventional investment of $56,000 in tangible assets, the Alpacas. Fortunately for her, she had two new alpaca babies at the end of the first year. The market value of one show alpaca is averaged at $15,000. That equates to almost 26.79% return on her initial investment within one year. The alpaca market is stable, demand is high, and Betty has the assets to continue growth in the breeding business. Team B believes that Betty should make a capital improvement in purchasing two additional male and two additional female show quality Alpacas.
Research reveals that alpacas, the llama look-alike, are easy to care for and require very low maintenance. Females become sexually mature between the ages of 12 to 18 months so purchasing ones that are at least twelve months old is key. Male alpacas become sexually active between 18 months and 3 years so purchasing two around 24 months would be ideal so the breeding could start whenever Betty wanted (Northwest Alpacas, 2014).
The additional investment would be somewhere between $56,000 and $60,000 dollars for the additional four alpacas (two male and two female). With the additional alpacas come additional breeding and baby alpacas. If each female produces one baby a year, that would be an increase of $30,000 in revenue and a 50% ROI in just the 1st year. The normal gestation period is 11.5 month which means each female can produce one baby a year and most are re-mated 2-6 weeks after giving birth (Northwest Alpacas, 2014). In year two Betty could pay back her entire additional investment and by year three making money.
The market for alpacas has been
Betty Parks, a 49 year old building code auditor, became frustrated as she watched her retirement investment in a 401K move in the wrong direction. Specifically, Betty lost approximately 50% of her investment in the 401K, she had planned to use for retirement. After three years of research, Betty decided to make an unconventional investment of $56,000 in tangible assets, the Alpacas. Fortunately for her, she had two new alpaca babies at the end of the first year. The market value of one show alpaca is averaged at $15,000. That equates to almost 26.79% return on her initial investment within one year. The alpaca market is stable, demand is high, and Betty has the assets to continue growth in the breeding business. Team B believes that Betty should make a capital improvement in purchasing two additional male and two additional female show quality Alpacas.
Research reveals that alpacas, the llama look-alike, are easy to care for and require very low maintenance. Females become sexually mature between the ages of 12 to 18 months so purchasing ones that are at least twelve months old is key. Male alpacas become sexually active between 18 months and 3 years so purchasing two around 24 months would be ideal so the breeding could start whenever Betty wanted (Northwest Alpacas, 2014).
The additional investment would be somewhere between $56,000 and $60,000 dollars for the additional four alpacas (two male and two female). With the additional alpacas come additional breeding and baby alpacas. If each female produces one baby a year, that would be an increase of $30,000 in revenue and a 50% ROI in just the 1st year. The normal gestation period is 11.5 month which means each female can produce one baby a year and most are re-mated 2-6 weeks after giving birth (Northwest Alpacas, 2014). In year two Betty could pay back her entire additional investment and by year three making money.
The market for alpacas has been
References: Northwest Alpacas. (2014). Alpacas Q&A. Retrieved from http://www.alpacas.com/QnA/Breeding.aspx Suglarloaf Alppaca Company, 4/30. Suglarloaf Alppaca Company. (4/30/2014). Retrieved from http://www.suglarloafpacas.com/financial.shtml The Bottom Line. (4/30/2014). Retrieved from http://www.alpacafarms.com/TheBottomLine.htm