Demand for the company telecommunication switches

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Bell TeleComm Security (BTS) forecasted that the demand for the company’s telecommunication switches will increase by 20% in three years from now, due to a new sales contract which will take effect in three years.  To meet the demand, BTS is considering one of two alternatives for building a new warehouse: (a) pay up front $1.9 million, or (b) or make monthly payments for the next three years at 1% per month.  What would the monthly payment be?  Also, you need to make a recommendation to the management on how to proceed. What is your recommendation?

Reference no: EM131573126

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