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| APPRAISAL EXHIBIT IV |
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BANK DEBIT CARDS |
ASSUMPTIONS |
Market Size |
$ 728, 900, 000, 000 |
| Average Transaction |
$ 37.00 |
| Average Cost |
$ 0.30 |
| Total Processing |
$ 5, 910, 000, 000 |
| Market Share |
5.00 % |
| Growth |
10.00 % |
| Royalty Rate |
5.00 % |
| Discount Rate |
19.50 % |
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| Market Size |
Market Share |
Year |
Royalty Rate |
Royalty Income |
Present Value Factor (19.5 %) |
Net Present Value |
| $5,910,000,000 |
$295,500,000 |
1 |
5.00 % |
$14,775,000 |
0.91478 |
$13,515,855 |
| $6,501,000,000 |
$325,050,000 |
2 |
5.00 % |
$16,252,500 |
0.76551 |
$12,441,373 |
| $7,151,100,000 |
$357,555,000 |
3 |
5.00 % |
$17,877,750 |
0.64059 |
$11,452,310 |
| $7,866,210,000 |
$393,310,500 |
4 |
5.00 % |
$19,665,525 |
0.53606 |
$10,541,875 |
| $8,652,831,000 |
$432,641,550 |
5 |
5.00 % |
$21,632,078 |
0.44858 |
$9,703,818 |
| $9,518,114,100 |
$475,905,705 |
6 |
5.00 % |
$23,795,285 |
0.37538 |
$8,932,385 |
| $10,469,925,510 |
$523,496,276 |
7 |
5.00 % |
$26,174,814 |
0.31413 |
$8,222,279 |
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| TOTAL |
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$74,809,896 |
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According to 2007 - DEBT ISSUERS SURVEY (Dove Consulting), debit card volume increased by 18% in 2006 and a similar rise is expected in 2007 |
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The Nilson Report (2005) had debit cards ending the year with 19.7 billion transactions, 600 million more than the 19.1 billion credit card transactions Market share was 51% for debit cards and 49% for credit cards (based on volume) according to the Nilson Report (2005). |
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| Download Final Report |
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