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Raising Williams, Arizona: Al's Railroad Museum
Kathryn S. Savage
published: 2006 | Case Study | Accounting/Finance
Subject Area: Accounting/Finance; Small Business/Entrepreneurship
Key Issues: Not-for-Profit Analysis; Feasibility Study; Pro Forma Cash Flow Analysis and NPV; Scenario Planning and Sensitivity Analysis
Case Description: Williams, Arizona, is an economically troubled small town in northern Arizona, located 59 miles south of the Grand Canyon. Much of the economic activity in the community is directly or indirectly related to tourism from Grand Canyon visitors. As a civic-minded local historian and entrepreneur, Al Richmond saw both the problems and opportunities facing the community. Al believed that a museum that featured railroads and their history would compliment the existing tourist infrastructure. Although the costs were significant, the idea seemed feasible. Al and other backers of the project, including the Williams- Grand Canyon Chamber of Commerce, believed that a 100,000-square-foot railroad museum would not only attract additional visitors to Williams, but that those visitors would also remain in the area for longer periods of time. Al knew his charisma and personal commitment alone would not generate the necessary support to fund the museum. He needed financial information including pro forma financial statements to establish initial cash flows for the project and prove its sustainability over the long run.
# Case Pages: 8
Case Number: 020046-24-1
Teaching Note: Yes
revised May 23/06
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