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You have the following information on expected operating costs: Item No. Units Price/Cost Rent 250 $300.00 Administration Costs (per month 12 $3,000.00 Utilities and Internet

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You have the following information on expected operating costs: Item No. Units Price/Cost Rent 250 $300.00 Administration Costs (per month 12 $3,000.00 Utilities and Internet (per month 12 $300.00 Casual workers (per day) 100 $60.00 Paper & Stationary 200 $6.00 Educational Merchandise 350 $10.00 Miscellaneous Operational Cost $5,600.00 You also expect that the department will advertise via a community awareness campaign. Advertisements will take two forms, the first is a pay per click campaign. You expect 150,000 clicks per year at a cost of $1.10 each. Your team also anticipates the need to conduct print advertising due to limited internet access for many elderly people. This print advertising will cost $950/month. Additionally, insurance will be 3.5% of the initial investment cost per year. To be able to offer this program, your department is expected to take out some loans. Following this the department intends to secure a loan for $1,000,000 in 2021, carrying an interest rate of 6.7% per annum (real), repayable over 15 years. The department also intends to take out a second loan in 2025 of $600,000 to cover any additional needs that may arise throughout the project. This second loan has an interest rate of 4.5% (real) and a life of 15 years. The tax rate on profits is 25%. The expected benefits of this project are twofold: 1) The department will run an Education and Financial Management Program (EFMP). You estimate that 250 participants will be involved in the training program. The price you expect to charge is $2,500 for each participant. 2) Evidence from previous research by the EAPU determined $14 million was exploited from elders in 2007/8. Following from this, you assume that $14 million in assets go missing each year. As part of the program, your department is expected to help recover 15% of this amount per year. To make your analysis easier, you assume that the department receives this as a benefit and will pay taxes on any recovered assets

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