Question
given the information below.. what would the weighted average capital cost for the long term? Year 1 Revenue *Self-Funding $10,000 *Loan Startup (10 year loan
given the information below.. what would the weighted average capital cost for the long term?
Year 1
Revenue
*Self-Funding $10,000
*Loan Startup (10 year loan (120 months) at 5% interest) $40,000
*Membership Fees ($50 p/mo x 50 members x 12 mo) $30,000
*Sponsorship (college students, senior adults, classes) $5,000
Total Revenue $85,000
Expenses (need details)
*Salaries Owner/Manager ($1,500 p/mo x 12 mo) $18,000
- Trainer ($1,200 p/mo x 12 mo) $14,400
Total Salaries $32,400
*Benefits w/c, fed/state, ss - 12% of total salaries $3,888
*Loan Payment (120 mo loan - $333.33 x 12 mo) $4,000
*Loan Interest (5% loan $16.67 x 12 mo) $200
*City License $25
*Building Rent ($600 x 12 mo) $7,200
*Utilities Power, Water ($250 p/mo x 12 mo) $3,000
*Equipment Crossfit, maintenance, flooring $15,000
*marketing ads - $2,000
Total expenses -$67,713.00
Net Income $17,287.00
Year 2
Revenue
*Membership Fees ($50 p/mo x 75 members x 12 mo) $45,000
*Sponsorship (college students, senior adults, classes) $8,000
Total Revenue $53,000
Expenses (need details)
*Salaries Owner/Manager ($1,500 p/mo x 12 mo) $18,000
- Trainer ($1,200 p/mo x 12 mo) $14,400
Total Salaries $32,400
*Benefits w/c, fed/state, ss - 12% of total salaries $3,888
*Loan Payment (120 mo loan - $333.33 x 12 mo) $4,000
*Loan Interest (5% loan $16.66 x 12 mo) $200
*City License $25
*Building Rent ($600 x 12 mo) $7,200
*Utilities Power, Water ($250 p/mo x 12 mo) $3,000
*marketing ads - $2,000
Total expenses -$52,713.00
Net Income=$287.00
Year 3
Revenue
*Membership Fees ($50 p/mo x 100 members x 12 mo) $60,000
*Sponsorship (college students, senior adults, classes) $12,000
Total Revenue $72,000
Expenses (need details)
*Salaries Owner/Manager ($1,500 p/mo x 12 mo) $18,000
- Trainer ($1,200 p/mo x 12 mo) $14,400
Total Salaries $32,400
*Benefits w/c, fed/state, ss - 12% of total salaries $3,888
*Loan Payment (120 mo loan - $333.33 x 12 mo) $4,000
*Loan Interest (5% loan $16.66 x 12 mo) $200
*City License $25
*Building Rent ($600 x 12 mo) $7,200
*Utilities Power, Water ($250 p/mo x 12 mo) $3,000
*marketing ads - $2000
Total expenses -$52,713.00
Net Income=$19,287.00
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