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Mr. Lando saw a motorized drivable lawn mower on sale for $3,000. With this, he expects to increase capacity and his lawnmowing capabilities by 6
Mr. Lando saw a motorized drivable lawn mower on sale for $3,000. With this, he expects to increase capacity and his lawnmowing capabilities by 6 times. He charges $30 per job but would be able to do it three times as fast and thus increase capacity. But the added cost of fuel is estimated to be $200 per year. If the investment makes sense, Lando can borrow the money on a 6.25% line of credit. What are the net present value and cash payback period and is it a good investment?
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