Project Mame: Expansion Project Cost of Project: 3 487,734 Cash Balance at 31 Dec 2024: 5 334,968 With the additional floor space, Tracie and Conor anticipate that the sales volume of Pedal Classic and the sales volume of Folding Urban Dream will increase by 30% and 40%, respectively, for each month in 2025 based on the corresponding month in 2024 (e.g. Jan 2025's growth is based on Jan 2024, Feb 2025's growth is based on Feb 2024 etc). Given the increase in ebikes, repair hours should also increase. Tracie and Conor expect that there will be an increase in the repair hours by 20% for each month in 2025 based on the corresponding month in 2024, The expansion itself won't begin until January 2025. The expanded storefront along with all new fixtures and furnishings will involve an initial setup cost (i.e. cost of project) which needs to be paid as a lump sum on 1st January 2025. This overall initial setup depreciates using the straight-line method and is expected to have a useful life of 10 years with zero residual value. Its depreciation is treated as 100% for facilitating the selling process and none for the general and administration purposes. To finance the project, a bank loan will be acquired which will cover 60% of the initial cost. The loan is with a local bank and it will start from 1st January 2025. The funds from this loan will be deposited into the business bank account on 1st January 2025. The loan is on an interest only arrangement with an interest rate of 12% per annum payable monthly. On top of the initial setup costs, the business will need to hire 2 additional Sale Assistants, 2 additional Bike Repair Technicians, and 1 additional Office Staff at the start of 2025. All new employees are expected to be paid the same rate as current existing staff. The expansion project would require the business to purchase one additional specialised equipment for repairs in order to meet increased demand, and thus, the initial cost of the specialised equipment will increase. The supplier of the specialised equipment has agreed to provide the business with a 20% discount to the price that the business has paid for the existing specialised equipment. This new equipment will need to be purchased at the start of February 2025, with payment for it to be made in April 2025. All other non-current assets will remain the same as 2024 amounts. All other fixed costs are assumed to increase by 80% based on 2024 amounts. After the 1st year of the new project (i.e. 2026), both the service volume and sales volume are expected to increase by 15% for each month in 2026 compared to the corresponding month in 2025. Sales Budget Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 TOTAL Expected Sales Volume Pedal Classic x Selling Price per Unit Sales Revenue ($) Folding Urban Expected Sales Volume x Selling Price per Unit Dream Sales Revenue ($) TOTAL Sales Revenue ($) Expected Service Volume eBike Repairs x Selling Price per Hour TOTAL Service Revenue ($)FactSheet - Data on 2024 Financial Year Jan-2024 Feb-2024 Mar-2024 Apr-2024 May-2024 Jun-2024 Jul-2024 Aug-2024 Sep-2024 Oct-2024 Nov-2024 Dec-2024 Sales Volume - Pedal Classic 214 225 200 213 203 254 247 222 132 162 177 190 Sales Volume - Folding Urban Dream 305 320 326 310 321 433 427 341 307 301 118 125 Service Volume - No. of Hours (Repairs) 277 291 296 282 292 394 388 310 279 274 380 386 Selling Price - Pedal Classic 500.00 Cost Price - Pedal Classic 300.00 Selling Price - Folding Urban Dream $ 800.00 Cost Price - Folding Urban Dream $ 650.00 Service Revenue Per Hour (Repairs) $ 80.00 Number of Sale Assistants: 3 Wage Rate Per Employee Per Month $ 6,000 Number of Office Staff: 2 Wage Rate Per Employee Per Month $ 3,500 Number of Repair Technicians 4 Wage Rate Per Employee Per Month $ 5,500