Mountain Rider’s Alliance is a group of like-minded people dedicated to making a positive change in the ski area industry, as well as supporting the environment and surrounding communities. MRA believes riding is more than a sport, but rather a way of life.
MRA is an ongoing global collaboration, with over 50 active team members from 6 different countries contributing to our grassroots organization. Their mission is to develop values-based, environmentally-friendly, rider-centric mountain playgrounds that encourage minimal carbon footprint business practices as well as alternative energy creation, while making a positive impact in the local community.
This project worked with the Mountain Rider’s Alliance (MRA) a values-based start-up that is working to create sustainable ski areas called Mountain Playgrounds. The objective of the financial analysis was to assess the viability of two different potential Mountain Playgrounds that MRA is considering developing.
MRA is a business founded on triple bottom line principles and the principles of sustainability. The company’s tagline is “”Creating Sustainable Mountain Playgrounds,”” which clearly states their commitment to sustainability.
The project used key financial assumptions provided by the project partner to develop 10-year proforma cash flow statements. Methods of analysis included: NPV, IRR, Profitability Index and Opportunity Cost of Capital.
The analysis lead the team to recommend that MRA focus its efforts on conversion of existing small and medium size resorts to the Mountain Playground model, rather than trying to develop new ski areas. The conversion model is more viable partially due to the avoidance of large up-front capital requirements of starting a new ski area. Successful application of the Mountain Playground model to several different mountains will increase the value of MRA’s brand and ensure success of the enterprise.