I have decided to start a brewery in my barn. The major investment for the brewing equipment set up is going to be $124,000. I have done the projections for my new brewery, Brewing in the Duff, and I show that during the first year of operations that I will have $35,000 in profits. I did my research and I will be able to get a government grant for $30,000 so I will just need to secure a loan for the balance. I was able to get a small business loan for my investment at a rate of 6% from my bank.

1 . Calculate what my ROA is. 2. Calculate what my cost of financing is. 3 . Should I continue with my brewery business plans? Why or Why not?