Question
Valles Global Industries (VGI) is considering purchasing a new 3-D prototyping machine that costs $650,000. Installation...
Valles Global Industries (VGI) is considering purchasing a new 3-D prototyping machine that costs $650,000. Installation costs $85,000.
a) If they borrow money at 12%, how many hours a month must be rented at $150 per hour to unsuspecting users so they exactly cover their purchase and loan costs? Use a three-year life.
b) Recently, VGI discovered a new lender who will lend them money at 8%. This lender wants VGI to pay them 20% of each month’s rental over the three-year period. How much is that worth?
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