APPENDIX B: Expurgion - Financial Dutail The controller has put together some projections associated with the expansion inin laned. The breakdown of the expected start-up costs for this project include: Equipment: The company plans to rent their manufacturing space, but would need to incur $1.000,030 for the purchase of new equipment. Marketing and Advertising Expenses: ImuvAppliance plans to allocate $500,00 fur marketing and advertising campaigns targeted at the bracli market. This includes promotional activities, market research, and advertising campaign to ercalc brand awareness and suraci cuskemner Research and Development Onis Over the last 2 years the company has spent $185,100 an travel and research & development related custs. To slapt the products for the lanc market and meck local regulatory requirements, ImovAppliance anticipates incurring another $300,000 in research and development costs. This includes product modifications, certification, and Distribution and Logistics Expense Falablushing distribution channels and ensuring efficient logistics in a new market involve additional costs. InnovAppliance climates that it will need be Jade $1010,000 for distribution network achop, transportation, warchousing, and order fulfillment in brack. Legal and Regulatory Fees: Expanding into a new country requires legal and regulatory compliance. InnovAppliance expects to spend $100,000 on legal and regulatory fees for market entry permits, licensing, and compliance with largeli regulation. Administrative Costs Additional administrative costs are anticipated for managing operations in brack. These creds inclule setting up a local office, hiring local staff, and complying with local administrative requirements. Innov AppLance estimates that it will need to locate $150,100 for administrative expenses associated with the expansion. Financing costs: Depending on the financing option the company decides to pursue, there could be additional interest expense that the company will need in incur. The reverc projections for the expansion into larael in the find $ years are as follows Year 1: InnovAppliance expects In generate $3 million in revenues from the Israeli market. Year 2: The company anticipates a growth rate of 20% in the barack market. Year 3: The company projects further growth of 15%% in the bracli markel. Year 4 & 5: The company expects 10%% growth per year. Going forward if the company woes the new cheaper lanci suppliers, they expect the pruss profit " to increase by K in comparison in the 2021 operation in Canada Annual labor costs are 10%% higher in larch however the remaining operating expenses are expected in fall in line with the sinc % of sales as Canmalian operations. The Israeli tas male is expected to be 50% of dic Canadian tax nic