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Guidelines and Accomptions 1. The primary activities of the proposed business must be FA:B-related, which may include food preparation for dining on-site and takeaway, retail,

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Guidelines and Accomptions 1. The primary activities of the proposed business must be FA:B-related, which may include food preparation for dining on-site and takeaway, retail, etc. It must not be a (i) Franchise or (m) Wholesale Distribution business concept 2. The proposed business must include sustainability initiatives which are to be clearly articulated However, you cannot include composting of food waste ideas in your proposal as there is currently am existing business in the process of coordinating with the National Environment Agency (NE.A) to implement a central food composting system for the management of food waste for the Dempsey area 3. There are three adjoining single-storey vacant unite located in one of the blocks at Dempsey, each unfurnished at 1,000 square feet (comprising of 900 square feet for indoor and 200 square feet for outdoor wee). Rental for each unit is at $12,000 per month, fixed for a minimum 3-year lease. There is a discount of 10% if you rent two adjoining units or 15% if you rent all three units. 4. In deciding the space required, you need to consider the current requirements of the proposed business, the maximum foreseeable operating capacity and ability to accommodate future expansion of the business Changes to the space leased during the tenancy term is not permitted. Rental deposit required is equivalent to 2 months' rental, to be paid together with the first month's rental upon commencement of the leave Sub-letting is not allowed 5. The first month of operations is the gestation period of the new business, e g. staff recruitment, renovation, staff training and etc. The first revenue can only be received by the new business from the second month onwards in the financial forecast. 7. The depreciation for any capital investment is a straight line over three (3) years. B. You are able to invest $00,000 as your initial equity capital The potential investor is willing to invest between 40% to 70% of the balance of capital required as his equity stake ("you will need to propose the amount). The remaining shortfall in capital will be extended as a loan to the business at the start, with only interest payable each month (see further for cost of debt) and the full repayment of the principal on the 36* month 9. The following Cost of Capital (Weighted Average Cost of Capital, WACC) formula must be used (no marks will be awarded if any other WACO formula is weedj WACC = D *(1 - T . )

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