Page 278 - The Green Building Bottom Line The Real Cost of Sustainable Building

256 CHAPTER 8

ears
Y Years 0 1 2 3
REVENUES
REVENUES
Shaping values, chapter 11
Shaping values, chapter 21,300 21,300 21,300
21,300
21,300
21,300
a
cultur
eo
Creating a culture of grreen glue, chapter 2 2 79,000 79,000 79,000
Cr
eating
fg
79,000
79,000
79,000
een
glue,
chapter
3,300
3,300
Gr een fr om the inside out, chapter 3,300 3,300 3,300
Green from the inside out, chapter 33
3,300
Developing expertise in LEED, chapter 0 0 0
Developing expertise in LEED, chapter 44
Sustainable brokerage, chapterchapter 8
Sustainable br okerage, 8 0 0 0 0
Sale of Gr een, Inc.
Sale of Green, Inc.
Total Revenuesotal Revenues 103,600 103,600 103,600
103,600
103,600
103,600
EXPENSES
EXPENSES
14,500)
(166,000)
Shaping values, chapter 11
(91,875)
Shaping values, chapter (166,000) (1 (114,500) (91,875) (97,286)
(97,286)
(64,631)
(57,600)
(72,717)
Cr eating a cultur eo fg een glue, chapter 2 0 (57,600) (64,631) (72,717)
Creating a culture of grreen glue, chapter 2
(22,381)
(22,998)
Green from the inside out, chapter 33
Gr een fr om the inside out, chapter 0 (78,490) (22,381) (22,998)
(78,490)
(417,000)
(49,000)
(150,000)
in
LEED,
chapter
Developing
Developing expertise in LEED, chapter 44 (49,000) (150,000) (417,000) (890,000)
(890,000)
expertise
okerage,
Sustainable brokerage, chapterchapter 8 8 0 0 0 0
Sustainable
br
(215,000)
(400,590)
(1,083,002)
(595,888)
Total Expensesotal Expenses (215,000) (400,590) (595,888) (1,083,002)
(979,402)
(296,990)
(215,000)
(492,288)
Total Cashflowotal Cashflow (215,000) (296,990) (492,288) (979,402)
0.751
Discount Factor
Discount Factor 1.000 0.909 0.826 0.751
0.909
0.826
1.000
(406,849)
(735,839)
PV Cashflow (215,000) (269,991) (406,849) (735,839)
PV Cashflow
(215,000)
(269,991)
NPV
NPV 2,621,324
2,621,324
IRR
IRR 30.02%
30.02%
¸ Figure 8.5 Revised discounted cash flow of Green, Inc.
general sustainable practices in the community and also prove profitable to the com-
pany as a whole.
Concluding Remarks
The reading I do in my spare time is usually not about business—I tend to read histo-
ries or non-fictional accounts of adventures such as Jon Krakauer’s Into Thin Air or
Amundsen and Scott’s race to the South Pole. I do, however, find Yvon Chouinard’s
narrative of the founding of Patagonia compelling, perhaps in part because I like the
gear the company produces and admire a businessman who devotes so much of his
time to being outdoors. Chouinard makes a statement in his book that resonates with
me: “I learned at an early age that it’s better to invent your own game; then you can
always be a winner…. I’d much rather design and sell products so good and unique
that they have no competition.” 20
I don’t think I’m all that different from most brokers. Or at least I didn’t for most
of my professional life. Brokers are not known for inventing our own games. In fact,
we are about as conventional a lot as you will find.