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In machine repair/replacement, Marla estimates that the plant needs an additional $500,000 of repairs. While she can borrow additional funds on her current loan, she

In machine repair/replacement, Marla estimates that the plant needs an additional $500,000 of repairs. While she can borrow additional funds on her current loan, she wonders if it is a better idea to sell equity in the company. A friend, Janine, has offered her $650,000 for a 25% stake in the business. Under that arrangement, the land would remain fully owned by Marla. Marla is wondering what the pros and cons are of accepting Janines offer.

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