I’m working on a management discussion question and need support to help me learn.
When construction companies are building new projects such as a housing development or a large building, large pieces of equipment are needed to complete these projects. Equipment types can include bulldozers, boom lifts, or cranes.
For this Discussion Board, suppose you own a construction company and need a certain piece of machinery to complete a building project. Assume that the cost is $100,000 to purchase this machine, which has a life span of 10 years. However, renting this machine would cost $2000 per month. Based on this information, discuss the following:
- What are the pros and cons of buying the machine?
- What are the pros and cons of renting the machine?
- For your construction company, does it make more sense for you to purchase the machine or rent it? Why?
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