Question
Brigitte's Bakery is considering expanding to a second location in Corner Brook. They would take out a lease on January 1, renewable every four years,
Brigitte's Bakery is considering expanding to a second location in Corner Brook. They would take out a lease on January 1, renewable every four years, at a cost of $10,000 per year. They would install $13,000 worth of equipment for selling and storing the baked goods. If sales go as well as anticipated, after two years, they will spend $6,000 on capital improvements to the space and install an oven for $3,000 so that they can produce some goods locally. To evaluate this proposal over an eight-year time horizon, Brigitte assumes that the salvage value of all equipment combined in eight years would be $2,000.
Prove the UCC at the end of year 8 expressed at the end of the Brigitte's Bakery problem by filling in the UCC for each year.
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