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To allow the purchase a specific
asset
In 8 years time Mr Ship
wants to find the financing for a 62 504 € boat but does not
want to borrow from a bank at 9 to 12 %.
To get that, Mr Ship can buy 6 heads per year (growth option)
If the calculation is made on the following figures :
- cost per head : 1 143 €
- average yearly yield : 4,20 %,
At the end of 8 years his livestock will
be 55 heads, or 62 865 €.
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