A contractor is looking at purchasing a new piece of


A contractor is looking at purchasing a new piece of construction equipment. He can either buy it now or two years from now. The cost is $68,000 if purchased now. If purchased in two years, it will cost $81,000. Assume i = 10%/year and inflation f = 5%/year. Should he purchase now, or in two years? Consider this problem both without adjusting for inflation, and then with adjusting for inflation.

Request for Solution File

Ask an Expert for Answer!!
Business Economics: A contractor is looking at purchasing a new piece of
Reference No:- TGS01112795

Expected delivery within 24 Hours