Economic & Financial Model

Income Statement / Start-up Cost & Break-even Point

Assumptions:

Average cost per product displayed is estimated at R10 for year 1, R12 for year 2 and R15 for year 3.

11 703 Advertisements must be sold per month to break-even; this will be achieved in 18 months.

Total capital required is R1801 794 (Calculated as follows; R800 649 loss in year 1, estimated loss of R300 000 for the first 6 months of year 2 and once of start-up finance of R701 145)

ROI (Return on Investment)

Year 1: -

Year 2: 1.7%

Year 3: 77.2%