Roofing Alternatives for a 20,000 square foot 25 Year Old Galvanized Steel Roof |
WHAT ARE THE INITIAL COSTS OF THE VARIOUS ALTERNATIVES? |
Analysis 1. Initial Cost of each Alternative |
IronSentry |
New Roof Now |
Acrylic |
Do Nothing Now |
HOW MANY SQUARE FEET? |
20,000 |
20,000 |
20,000 |
20,000 |
PRICE PER SQUARE FOOT |
$2.25 |
$6.50 |
$2.00 |
$0.00 |
INITIAL OUT OF POCKET COST OF EACH OPTION (Present Value) |
$45,000 |
$130,000 |
$40,000 |
$0 |
Tax effect of expensing repairs vs. capitalizing new roof @ 35% tax rate |
($15,750) |
($1,300) |
($14,000) |
$0 |
AFTER TAX FIRST YEAR NET CASH FLOW OF EACH ALTERNATIVE: |
$29,250 |
$128,700 |
$26,000 |
$0 |
|
WHAT ARE THE LIFE CYCLE COSTS OF THE VARIOUS ALTERNATIVES? |
Analysis 2. Net Present Value over 30 years of each Alternative |
Annual maintenance cost per square foot (last five years of New Roof) |
$0.00 |
$0.25 |
$0.00 |
$0.25 |
NPV Discount Rate |
6% |
6% |
6% |
6% |
Iron Sentry will last 30 years with 2 recoats. 1st recoat NPV |
$12,564 |
|
|
|
Iron Sentry will last 30 years with 2 recoats. 2nd recoat NPV |
$7,016 |
|
|
|
New Roof will require annual maintenance in its last five years NPV |
|
$5,035 |
|
|
Acrylic will require a 40% dearer new roof after 10 years. NPV |
|
|
$101,628 |
|
Do Nothing will require annual maintenance in first five years NPV |
|
|
|
$22,250 |
Do Nothing will require a 20% dearer new roof in five years NPV |
|
|
|
$116,572 |
|
Net Present Value of Additional costs of this option @ Discount Rate |
$19,579 |
$5,035 |
$101,628 |
$138,822 |
|
Pre-Tax Net Present Value of 30 year total cost of this option |
$64,579 |
$135,035 |
$141,628 |
$138,822 |
NPV of Tax Effect of Expense for IS vs. Capitalize for New Roofs @35% Tax |
($22,603) |
($16,914) |
($27,222) |
($15,167) |
|
NPV of 30 year total cost after Tax for each Alternative |
$41,977 |
$118,122 |
$114,406 |
$123,656 |
|
Extra NPV Cost to You of Not Choosing the Iron Sentry Solution Now |
$0 |
$76,145 |
$72,429 |
$81,679 |
|
WHAT ARE THE NORMALIZED COSTS OF THE VARIOUS ALTERNATIVES? |
Analysis 3. Effective Cost Normalization |
This analysis subjects Alternatives to the same normalization formula used by public works officials to judge between different materials. |
$62,926 |
$177,074 |
$171,503 |
$185,370 |
|
Extra Normalized Cost to You of Not Choosing the Iron Sentry Solution Now |
$0 |
$114,147 |
$108,577 |
$122,443 |
|