Amy was the Accountant of an International firm with a monthly income of $30,000. Due to the closure of the Hong Kong branch, Amy was dismissed last year and is not able to get a job with a comparable income. However, if she would accept, she could join a local firm with a monthly salary of $20,000. Alternatively, she may start and run her own consultancy firm to receive a monthly revenue of $40,000. If her business is not profitable in the first year of operations, she would work for a local firm.

To set up the new consultancy business, she has to withdraw her $100,000 saving at bank as capital, which earns an annual interest at the rate of 2%. She has to borrow $200,000 from the bank at an annual interest rate of 3% too. In her budget, the monthly rent of the office is $15,000 and the other expenses is estimated to be $8,000 per month. She will spend $80,000 to purchase office furniture and equipment with the following resale value estimation: