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?   

Answer rating: 100% (QA)

To calculate the return on assets ROA we need to divide the net income by the total assets ROA Net i... View the full answer