The estimated start.docx - The estimated start-up capital for the business makes the management team to now come up with ways of funding this budget The

The estimated start.docx - The estimated start-up capital...

This preview shows page 1 - 2 out of 2 pages.

The estimated start-up capital for the business makes the management team to now come up with ways of funding this budget. The firm has $1,500,000 cash as at now. The $500,000 of the capital has to be obtained externally. The business management intends to borrow the remaining amount from financial institutions that eligible for offering finances viable businesses like this one. It is intending to borrow from commercial banks in Algeria. According to the Trading Economics (2019) data, there has been a great improvement in the financial and capital sectors in Algeria. Therefore, commercial banks are able to offer business loans at quite considerable and affordable interest rates. The commercial banks lending rate is interest rate is 5.4 %. This clearly indicates that there is reduced cost of doing business. 3.6.2 EcoMax Plastics Ltd
Image of page 1

Subscribe to view the full document.

Image of page 2

Unformatted text preview: As shown in Table 3.2 below, the company will start making profits as from third year. Table 3.2 : EcoMax Plastics Ltd Projected Costs and Revenue ($) Item Year 1 Year 2 Year 3 Year 4 Year 5 Revenue 100,000.00 130,000.00 169,000.00 219,700.00 285,610.00 cost of sales 50,000.00 65,000.00 84,500.00 109,850.00 142,805.00 Gross profit 50,000.00 65,000.00 84,500.00 109,850.00 142,805.00 Expenses Rent 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 wages & salaries 40,000.00 44,000.00 48,400.00 53,240.00 58564.00 Ads & marketing 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 Insurance 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 Maintenance 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 Total Expenses 62,500.00 66,500.00 70,900.00 7574.00 81,060.00 Net Income (Loss) (2,500.00) (1,500.00) 13,600.00 34,110.00 61,741.00 Source : Author...
View Full Document

  • Spring '15
  • Mohamed Patel

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes