John, thanks for the additional input. I also have a management degree. I disagree with your cost analysis assumptions.
Applying your assumptions to the Pawnee gives it a break even rate of 2850 tows/year. That rate will never occur. Are you suggesting we sell it also ?
When comparing assets that are already acquired, the financing should not be used for the decision making. Besides, the winch loan is almost paid off.
When financing is discounted, the break even for the Pawnee is 700 tows per year. The winch break even is very close to zero. Both are manageable at our club.
The problem of paying for the overhaul and share buyback Have already been solved with the loan proposed by the Board. At the last board meeting, I proposed a different option for financing. It was not passed along to all.
It is: Have An interest only loan of $100k At 5% interest. By carrying that financing, the club would continue it’s current growth rate and allow a dues reduction of $300 per member.