CAT VS DOG Group 5Slide 2ObjectiveScenarioSlide 5VariablesInitial AnalysisInitial Analysis - SummarySensitivity AnalysisSlide 10When is a Dog more economical?Sensitivity Analysis Cont.After Interviews, We Revised Our NumbersCAT WINS!!!Project ResourcesUseful ResourcesQuestions?CAT VS DOGGroup 5Jessica GoodheartMotivational Counselor Nishel BaswellSecretarial AccompliceKristy ClarkGraphic DesignerObjective•Cat or Dog - Which one costs less?•Yearly cost to own Cat/Dog•Compare EUACScenarioHuman:•Works 40 hours a week•Makes $65,000 a year initially•4% raise per year•25 years of age when the dog or cat is obtained•House:Yard: 1500 ft2Flooring: ½ Carpet, ½ TileFurniture: ModerateScenario•Equal lives of 13 years•Medium size•Indoor/Outdoor•2 meals/dayVariables•Food, Treats•Toys•Vet Bills, Property Damage, etc.•One-time purchases•Repetitive expensesInitial AnalysisYearsDog CatAverage CostMinimum CostsMaximum CostsAverage CostMinimum CostsMaximum Costs0 $ 325.00 $325 $325 $ 135.00 $ 135.00 $ 135.00 1 $ 2,910.61 $2,814 $3,032 $ 1,980.54 $ 1,889.79 $ 2,061.68 2 $ 2,284.34 $ 2,227.91 $ 2,361.91 $ 1,647.44 $ 1,565.28 $ 1,742.50 3 $ 2,349.69 $ 2,291.57 $ 2,429.58 $ 1,696.86 $ 1,612.24 $ 1,794.77 4 $ 2,420.18 $ 2,360.31 $ 2,502.47 $ 1,747.77 $ 1,660.61 $ 1,848.62 5 $ 2,492.78 $ 2,431.12 $ 2,577.55 $ 1,800.20 $ 1,710.43 $ 1,904.08 6 $ 2,567.57 $ 2,504.06 $ 2,654.87 $ 1,854.21 $ 1,761.74 $ 1,961.20 7 $ 2,644.59 $ 2,579.18 $ 2,734.52 $ 1,909.84 $ 1,814.59 $ 2,020.03 8 $ 2,790.96 $ 2,723.58 $ 2,883.58 $ 2,030.47 $ 1,932.37 $ 2,143.97 9 $ 2,971.77 $ 2,942.31 $ 3,016.71 $ 2,201.93 $ 2,188.60 $ 2,202.73 10 $ 3,128.12 $ 3,097.78 $ 3,174.40 $ 2,335.19 $ 2,321.45 $ 2,336.01 11 $ 3,291.18 $ 3,259.92 $ 3,338.85 $ 2,474.46 $ 2,460.30 $ 2,475.30 12 $ 3,489.72 $ 3,457.52 $ 3,538.82 $ 2,648.49 $ 2,633.92 $ 2,649.36 13 $ 4,299.30 $ 4,266.15 $ 4,349.88 $ 2,977.60 $ 2,962.59 $ 2,978.49 Present Worth of Cost $ 26,810.94 $ 26,289.36 $ 27,531.60 $ 19,298.57 $ 18,677.98 $ 19,948.44 EUAC $ 2,854.18 $ 2,798.65 $ 2,930.90 $ 2,054.44 $ 1,988.38 $ 2,123.63Initial Analysis - Summary3% inflation, 5% MARRCosts EUAC Dog EUAC CatAverage 2854.18 2054.44Minimum 2798.65 1988.38Maximum 2930.90 2123.63Sensitivity AnalysisVarying Inflation and MARRInflation RateEUACDOGEUACCAT1.50% $2,594.20 $1,864.072.00% $2,677.45 $1,925.032.50% $2,764.07 $1,988.463.00% $2,854.18 $2,054.443.50% $2,947.94 $2,123.104.00% $3,045.49 $2,194.544.50% $3,147.00 $2,268.875.00% $3,252.62 $2,346.21MARR EUACDOGEUACCAT3.50% $2,872.48 $2,070.304.00% $2,866.23 $2,064.924.50% $2,860.13 $2,059.635.00% $2,854.18 $2,054.445.50% $2,848.38 $2,049.366.00% $2,842.74 $2,044.386.50% $2,837.25 $2,039.507.00% $2,831.90 $2,034.73Sensitivity AnalysisVarying Dog Boarding CostBoarding EUAC DOG $ (100.00) $ 2,055.77 $ (50.00) $ 2,116.26 $ - $ 2,176.74 $ 20.00 $ 2,200.94 $ 80.00 $ 2,273.52 $ 140.00 $ 2,346.10 $ 200.00 $ 2,418.68 $ 260.00 $ 2,491.27 $ 320.00 $ 2,563.85 $ 380.00 $ 2,636.43 $ 440.00 $ 2,709.01 $ 500.00 $ 2,781.60 $ 560.00 $ 2,854.18 EUACCAT Initial$2,054.44When is a Dog more economical?EUAC 2,854.17EUAC 2,929.28Sensitivity Analysis Cont.Varied food consumptionFood/Day(lbs/day)EUACCAT0.19 $2,054.44 0.38 $2,214.53 0.56 $2,374.61 0.75 $2,534.69 0.94 $2,694.78 1.13 $2,854.86 EUACDOG Initial$2,854.18After Interviews, We Revised Our NumbersDog•Purchase of Dog Toys: ↑↑•Frequency of Grooming: ↓↓•Adjusted Once-in-a-lifetime materials costs.•Delayed $50 gradient increase to vet bills•Assumed we would board our dog in our home and pay a neighbor $20/day to feed, water, and walk our dog.Cat•Frequency and Cost of Cat Toys: ↑↑•Bought a cat tree with our repetitive miscellaneous materials money.•Delayed $50 gradient increase to vet bills.•Assumed continued property damage throughout the lifetime of the cat, doubling the estimated property damage in the first and last year of the cat's life.CAT WINS!!!Years Dog Cat0 $ 325.00 $ 135.00 1 $ 2,356.23 $ 2,158.47 2 $ 1,844.60 $ 1,836.20 3 $ 1,896.75 $ 1,891.29 4 $ 1,953.65 $ 1,948.03 5 $ 2,012.26 $ 2,006.47 6 $ 2,072.63 $ 2,066.66 7 $ 2,134.81 $ 2,128.66 8 $ 2,202.54 $ 2,192.52 9 $ 2,300.47 $ 2,303.61 10 $ 2,369.48 $ 2,372.72 11 $ 2,509.78 $ 2,513.11 12 $ 2,656.36 $ 2,688.31 13 $ 3,411.58 $ 3,018.61 Present Worth of Cost $ 21,312.48 $ 20,712.39 EUAC $ 2,268.84 $ 2,204.95Project Resources•Personal Experiences•Internet•Costco, Target, Sams Club, Wal-Mart, Pet-Smart, Petco•Interviews•TextbookUseful Resources★www.moneycentral.msn.com/home.asp •Financial calculators•News•Women in
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