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Sofia expects that she will have to spend some additional money to purchase equipment for her business. She is going to have to purchase a very specialized tubing bender. She was shocked to find out that this is going to cost $42,000. In addition to that, the tubing bender has to be shipped from across the world and the shipping cost is $1,500 with a timeframe of about three months out. The installation costs are going to be $4,800.
This machine is going to replace the machine that she purchased off of Craigslist years ago. She paid $10,000 for that machine seven years ago and it currently has a market value of zero. The new tubing bender is far more efficient than the one off of Craigslist. She anticipates that it will reduce her operating costs by $6,600 a year.
What is Sofia's net investment on this new purchase?
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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