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?

QUESTION 2

1 Describe the type of business that you have in mind for your business plan project.

2 What form of business organization would you select to create for your business (sole proprietor, partnership, corporation, etc)?

Why did you select this form of business organization (pros and cons)?

3 What are some of the start up costs and assets that you will need to purchase for your business?

4 Where do you think you will get money for your start up costs?

Financial Management Assignment #1 - Topic #1 QUESTION 1 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 S30,000 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? QUESTION 2 1 Describe the type of business that you have in mind for your business plan project. 2 What form of business organization would you select to create for your business (sole proprietor, partnership, corporation, etc)? Why did you select this form of business organization (pros and cons)? 3. What are some of the start up costs and assets that you will need to purchase for your business? 4 Where do you think you will get money for your start up costs