Question
Screen mount revenue $200k/year, tax rate 20%, i = 5% Option 1: Buy tooling, $800K, Life 10 yrs, $50K salvage Option 2: Loan, $800K, $40K/year
Screen mount revenue $200k/year, tax rate 20%, i = 5%
Option 1: Buy tooling, $800K, Life 10 yrs, $50K salvage
Option 2: Loan, $800K, $40K/year interest payment, balloon at 10 yrs $800K
Option 3: Lease, $100K for years 1 -10.
Use Present Worth (PW) analysis to determine which is the best option.
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Calculus Early Transcendentals
Authors: William L. Briggs, Lyle Cochran, Bernard Gillett
2nd edition
321954428, 321954424, 978-0321947345
