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Chintus older sister, Dr. Happy Chatterjee, is also a chai lover. However, due to her demanding career as a medical doctor, she does not have

Chintus older sister, Dr. Happy Chatterjee, is also a chai lover. However, due to her demanding career as a medical doctor, she does not have time to make chai. Through her social circles, she has learned about a chai making machine, known as the Chaiologist2000. The Chaiologist2000 can make all of the chai drinks Chintu Chaiwala offers. The machine costs $55,000 and would be useful for five years. It would result in added cash inflows of $10,000 for the first two years, and $15,000 for the last three years. Dr. Happy also mentions that there would be a maintenance fee of $7,500 to be paid in the third year. Chintu thinks this machine could be useful but is not sure if the cost is worth it. She can borrow money from the bank at a 7% rate. Alternatively, she can offer her older sister 30% equity in her business if she funds the machine purchase (Chintu would still be responsible for paying the maintenance costs). Regardless of the machine being a good or bad idea, Chintu wants a detailed analysis on whether she should have a business partner.

How to get Capital Asset- purchase with 30% equity?

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