Premium Blinds Ltd. specializes in the manufacture of custom and pre-finished blinds and drapes for windows and doors. The firm was founded by Bill Khadim, who retired 10 years ago and now lives in Orlando, Florida. When he retired, Bill assigned 60% of the shares of the corporation to Sara Khadim, his daughter. Much of Bill’s retirement income comes from the dividends he receives on his remaining Premium Blinds shares. Premium Blinds is now run by Sara. There are no other shareholders.
The custom window covering industry has been a highly competitive industry for many years, challenged by overcapacity and by less expensive online options. Premium Blinds has generally been able to attain reasonable profit levels in most years by specializing in higher quality installations with select builders and window manufacturers across Canada. During lean years, Premium Blinds has been able to rely on its credit union, the Town Credit Union (TCU), for loan support. As a result, a close working relationship has developed between TCU and
Premium Blinds.
In the spring of 20X2, Sara decided that the firm needed to acquire some new, technologically improved production equipment in order to stay up to date and to protect the company’s alreadythin profit margins. The equipment has a list price of $350,000, although Sara thought that it would be possible to bargain the price down to about $330,000.

Required:
Assume the role of David Geroux, and prepare a report to Sara Khadim.