Which figures work best?
The first example set here I do not expect to show much cause for excitement. I do hope though they can show the benefits to many hands make light work. The first example is shown as a standard and something which needs to be improved upon. Long term benefits are what I am trying to gauge for the long term invest.
For the purpose of these examples a unit price of 5,000 is used in all examples. In reality, a unit prices can vary. Business wise it could be anything, Depending on the product.
For an investment unit price of 5,000. A unit would be expected to return the cost over a 14 year period approximately. This return rate remains in the same margins for higher levels of investment too.
In some instance you will see Lost to time. This signifies the end life of a unit giving expected life time is 25 years. Though a unit is expected to still function after this time. Year times might be rounded of or rounded to the quarter year to avoid going too many decimals. In example 1. The fourth line "3 unit X 5 years." the years are rounded up from 4 years 9 month.
1 unit X 14 years. Cost covered.
2 unit X 7 years. Cost covered. 1 unit lost to time.
2 unit X 7 years. Cost covered.
3 unit X 5 years. Cost covered.
4 unit X 4.5 years. Cost covered. 1 unit lost to time.
Well this has taken 34 years lol. I think more than 1 unit is needed.
Let's try with 5 unit's. We need to get 4 units working in less than 34 years.
5 unit X 3 years. Cost covered.
6 unit X 2 years 5 month. Cost covered.
7 unit X 2 years. Cost covered.
8 unit X 1 year 9 month. Cost covered.
9 unit X 1 year 7 month. Cost covered.
10 unit 1 year 5 month. Cost covered.
11 unit 1 year 3 month. cost covered.
12 unit 1 year 2 month. Cost covered.
13 unit 1 year 1 month. Cost covered.
14 unit 1 year. Cost covered.
WOW! starting with 5 units we reduced from 34 years to 14 years and almost 3 X the quantity. With equal amount of units after 10 years. It has shortened time. But by enough?
Let's try the same thing with 20 unit's.
20 unit X 9 month. Cost covered.
21 unit X 8.5 month. Cost covered.
22 unit X 8.2 month. Cost covered.
23 unit X 8 month. Cost covered.
24 unit X 7.7 month. Cost covered.
25 unit X 7.4 month. Cost covered. Year 5 starts.
26 unit 7 month. Cost covered.
27 unit 6.5 month. Cost covered.
28 unit 6. Cost covered. End year 6.
Just over 5 and a half years to generate 2 unit's per year.
Ending year 6 with 29 units. An average of 1.5 years per unit gained.
Within 5 more years 3 additional units could be generated per year.
By year 15, 4 units extra per year.
18.5 years, 5 units extra per year.
21.3 years, 6 units extra per year.
24 years 7 units extra per year.
25 years 7 units extra per year.
At this point the 1st 20 units will begin to end their life cycle. 1 unit will be lost here for the next 6 years then increasing to 2 per year needing replacement. This bring us back to the start of a unit life cycle. Beginning this cycle creating 6 units per year vs the 1.3 units the original cycle gave. Beginning the cycle with 62 units vs the original 20 units.
50 begins with 3.5 units per year and 100 with 7 units per year.
100 units beginning. Each year will increase by 1 unit and in one instance the figure repeat for 2 years until reaching a steady growth of 1 unit per year or more. At the end of 6 years 100 additional units would be working.
Obviously there is more to making profit than just saying this can happen on paper, hidden costs recurring costs. It does show that the ability to grow something is greater when many units work together.
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