Palisade
185 Case Studies
A Palisade Case Study
Rudd Asset Management helped a large horse racing and competition complex that wanted a credible “green” policy but faced rising disposal costs for stall bedding and manure plus increasing energy bills. To test whether converting that waste into renewable energy would be economically viable, Rudd Asset Management used Palisade’s DecisionTools Suite, including @RISK, to model the many uncertainties and risks.
Using Palisade’s Monte Carlo simulation and tools like the tornado diagram, Rudd Asset Management identified wholesale power price as the primary value driver and refined assumptions accordingly; the analysis showed an expected NPV of nearly $1.2 million within five years, a 94% probability of positive NPV, an 18% IRR, a debt coverage ratio over 3.6, and a total investment under $9.2 million—confirming feasibility and enabling a data-driven decision.
Mark Rudd
President