The project will be financed with a total investment of AED 7,00,000. The total investment will be proportionately invested with AED 400,000 sourced from the bakery owners and remaining AED 300,000 borrowed from a local bank. Since we don’t have mortgage to offer, we are expecting the loan proceeds at the rate of 10%. The reason for borrowing from a bank is to gain the advantage of tax deductibility on interest paid on debt borrowings. a) Sales: Sales/ Turnover of the company is expected to grow consistently over the year. However,for the purpose ...
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