Description
Part One: Lease vs. Buy Decision
Your small business needs to buy new office furniture for your new headquarters. You have the option of leasing the furniture, or buying the furniture. You can purchase the furniture for $15,000 per year, or lease the same furniture for $5,000 per year for the next four years.
Your company has a marginal tax rate of 40%. Depreciation will amount to $3,750 per year and the furniture will be replaced after 4 years. If your company buys the furniture, they will borrow at 7%.
Required:
- Calculate the total cost for both options.
- Leasing vs. buying: which is the best option for your small business and why?
Part Two: Business Plan Project, Week 4
Continue to work on your business plan. This week, you will analyze international opportunities for your business as a part of your marketing strategy.
Required:
- Discuss and defend your position to market only domestically or both domestically and internationally.
- Identify the point at which it will be best to market internationally, even if that point will not be reached during the timeframe of the projected financials included in the plan.
- Update your projected financial statements to reflect the cost of marketing. If you have chosen to market both domestically and internationally, be sure to include the impact of any foreign presence in your marketing costs.
