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Ayman want to start a new project - a sport center project. Aymen appreciate that he needs to sborrow $50000 to buy fitness machines

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Ayman want to start a new project - a sport center project. Aymen appreciate that he needs to sborrow $50000 to buy fitness machines at 10%. The machine would depreciate over 10 years. Aymen think that he can sell these machine for $10000. Rent is $6000 yearly. The clup needs a supervisor, monthly salary $1000- ($12000 yearly). Aymen thinks that this club can attract at least 50 young man, each would pay $1200 yearly. Ayman pay 30% Tax. a. What is the net income of this club b. What is FCF of the project c. Calculate IRR- explain the significant of this number d. Calculate NPV- explain the significant e. Do you think Ayman should proceed with this project f. What is the min number of people, so that the club f. What is the min number of people, so that the club do not loose money (use Goal seek on Excel)

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Aymans Sport Center Project Analysis a Net Income Revenue Membership fees 50 members 1200member 60000 Expenses Rent 6000 Supervisor salary 12000 Loan ... blur-text-image

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