Can we expand and get bigger should we

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Question: Can We Expand and Get Bigger? Should We? The Next Steps:

Drs. Jones and Smith have reviewed the budget you provided for their expansion efforts. Both of them have indicated that they could contribute additional personal funds to the practice in an equal proportion to funding the expansion project, but they want you to advise them on whether this would be beneficial or too costly. Considering the time value of money, the cost of debt, and the loss of personal interest if they contribute to the practice instead of holding onto their private funds. What points of discussion would you present to the doctors and what would be your recommendation for the long-term growth of the practice vis-à-vis their personal wealth?

 

Reference no: EM133348462

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