The founder will purchase the facility, rather than rent it and will pay up to 85,000 for down payment. The costs total up to $587,980 and the expected income is of $705,600, revealing a net profit of $117,620 after the first year of operations. Part of the investment will come from the economies of the founder, the rest remaining to be gathered from bank loans. Contracting bank loans is the most suitable solution at this time as issuing stocks would require additional expenses. Foremost, there would be no guarantee the sum would be raised and the shareholders would get to become involved in the organization's activities. Also, the dividends granted to shareholders are seen as profits and as such taxed by the federal budget; credits on the other hand are seen as debt and are not taxed. As such, even if contracting bank loans does have some limitations, at the...
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