Subject category:
Finance, Accounting and Control
Published by:
Ivey Publishing
Version: 1999-01-19
Length: 3 pages
Topics:
Capital budgeting; Inflation
Abstract
The president and general manager of Township Motors, a franchised dealership, was considering two proposals for a new body shop facility. He has to decide whether to accept a loan at 15 per cent interest for ten years, or to lease the building and land for a ten-year period, with payment at year end.
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Abstract
The president and general manager of Township Motors, a franchised dealership, was considering two proposals for a new body shop facility. He has to decide whether to accept a loan at 15 per cent interest for ten years, or to lease the building and land for a ten-year period, with payment at year end.