For each of the three years, calculate the Gross Profit, Total Operating Expenses, Operating Profit and Profit Before Tax from the project. 1. The project would have a likely operational life of three (3) years 2. The project would require up-front initial investment of 21,000 in specialist IT equipment 3. The company is also borrowing 30,000 from the bank at an annual interest rate of 10% and the rest of the funding is coming from internal resources 4. The project would require the use of specialist software. This would require a fixed annual payment of 12,500 plus 25 for each customer using the on-line service 5. All sales will be for cash, paid for on-line by customers using debitor credit cards. The company's bank charges an annual fee of 2,500 to process all debit and credit card transactions. Each customer would pay 500 in each of the three years. In the first year, 100 customers would use the service, with sales volume increasing by 25% in the second year, and a further 40% in the third year 6. The project will not be liable for corporation tax on its profits as it is eligible for a special tax emption incentive scheme for five (5) years 7. Additional staff salaries would be 10,000 in year 1, 12,500 in year 2 and 20,000 in year 3. These are in addition to existing annual salaries of 5,000 for staff already employed who would be associated with the project 8. Before operations commence, the company will pay 24,000 for a three-year (3 years) lease of office space. Treat this as an operating expense 9. Computer consumables would cost 2.50 per customer in year 1, but will increase to 3 in year 2, and fall to 2 in year 3 10. The specialist IT equipment purchased for the project would be depreciated (straight line) over three years. It would be scrapped at the end of this period with zero residual value 11. Legal and insurance costs would be 2,500 each year 12. Advertising costs would be 3,500 each year