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As an accountant working for a reputable accounting firm in Tasmania, you have been approached by Mary to evaluate the feasibility of her projects, in
As an accountant working for a reputable accounting firm in Tasmania, you have been approached by Mary to evaluate the feasibility of her projects, in a formal business report. In this report, you will need to address the following questions, taking into account the background information provided and assuming that the city council regulations allow Mary to convert part of her farm into tourist resort accommodation. 1- What government grants or financial support might be available to help fund the project, and how can these be accessed? 2- What is the total cost of the tourist resort conversion project, including any costs associated with obtaining a council permit? 3- Will Mary need to borrow money from the bank, and if so, how much? What is the current interest rate on a loan for home improvements? 4- Is there any other annual cost associated with running the tourist resort, which Mary needs to consider? 5- How much rent could she charge for this type of accommodation, in the current market, and what is her potential income from the accommodation? 6- What is the break-even point for the projects
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