Question
You are planning to open a local restaurant, and can either rent or buy the facility. If you rent the facility, you will pay $2,500
You are planning to open a local restaurant, and can either rent or buy the facility. If you rent the facility, you will pay $2,500 per month in rent plus approximately $1,300 in utilities per month. You will also be required to purchase renters insurance, which will cost you $350 per month. All maintenance fees on the building and landscaping, however, will be provided by the property owner. If you buy the facility, your mortgage will be $1,800 per month, and utilities will be $1,300 per month. Your property insurance will be $600 per month and your expected maintenance costs are $1,000 per month. Which cost, if any is not relevant to the decision of renting or buying the facility?
A) all of the costs are relevant to the decision
B) utility costs
C) the $1,000 maintenance cost
D) insurance costs
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