... to break even in the second year and achieve a return on equity of 15%. Before opening, we have advertisement costs which mounting up to about $25,000 and we will mainly advertise in special magazines that are targeted to the upper class. We will finance the project through our main capital of $700,000, plus a loan of $124,000 from the bank, which we will repay in 4 years. After our first year of operation, in which we will loss around $844,000, we will renew our capital with $800,000, totaling to $1,500,000 in capital. During the next 3 years, we would have achieved 18.2% ROE, achieving 25% on the third year and onwards. Our equipment of $300,000 will be depreciated in 5 years period using the straight-line depreciation. As for our pre-operating expenses, these will cost us $392,000, amortized on a 4-years period. The competition in Lebanon is really strong in ...

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