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HUILEM SET PORTHUR CLASS 4-23 File Home Insert Review View X Cut Copy Format Porte Page Layout Formulas Data Con - AA z S .A. Help a te Merge Center - 28 O - $ . % Co l oma Sort & find for Sy 1 You are graduating in soon and would like to start your own business. You collect the following information on the initial costs 3 Cost of Plant and Equipment - $ 500000 + Licensing and Legal Costs - $ 50000 6 You can claim an investment tax credit of 10% on plait and quie t You also have been left a tidy inheritance that will cover the initial cost, and your estimated 7 You estimate that you can sell 1 million bottles a year MS1 abortle. You estimate your costs as follows: 8 Variable costs bottle - 50 cents 9 Fixed Costs/year-S200000 10 Adding up state, local and federal taxes, you note that you will be in the 50% tax bracket 11 To be conservative, you assume that you will terminate the business in 5 years and that you will get nothing from the plant and equipment as salvape you also a straight line depreciation) 13 As a final consideration you note that starting this business will mean that you will not be able to take the investment banking job 14 you have been offered which offered $ 75000 a yew for the next years. Should you take on the project) INSTRUCTIONS 12345678910 o e Type here to search a

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