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2. Deck Builders expansion plan: Construct pole barn to store equipment and materials for $12K. Purchase trailer for $4K. Purchase tractor, blade, and auger for
2. Deck Builders expansion plan: Construct pole barn to store equipment and materials for $12K. Purchase trailer for $4K. Purchase tractor, blade, and auger for $16K. New limited partner will put in $10K towards expansion. I apply to borrow the remainder from Second Federal Bank at 6% interest. I have a minimal rate of return of 10%. Market analysis indicates I can complete 10 more deck projects each year with an average profit of $600 each. I can also save an average of $100 per project on materials by buying in advance and storing them in the new barn. This will apply to a total of 50 projects per year. Second Federal will loan up to 70% of the economic value for small loans like this. Should they make the loan? 2. Deck Builders expansion plan: Construct pole barn to store equipment and materials for $12K. Purchase trailer for $4K. Purchase tractor, blade, and auger for $16K. New limited partner will put in $10K towards expansion. I apply to borrow the remainder from Second Federal Bank at 6% interest. I have a minimal rate of return of 10%. Market analysis indicates I can complete 10 more deck projects each year with an average profit of $600 each. I can also save an average of $100 per project on materials by buying in advance and storing them in the new barn. This will apply to a total of 50 projects per year. Second Federal will loan up to 70% of the economic value for small loans like this. Should they make the loan
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