Answer Happy

Financing I You had received $200,000 as inheritance from relatives which have passed on. You have skillfully invested this in stocks which give you 5% annual dividend and 5% annual growth. Your funds now amount to $400,000. Bank loans are available to you up to $5,000,000 at 2% interest rate if they consider you a low risk customer, or 5% if they consider you a medium risk customer. The bank will not give you a loan if they consider you a high risk customer. Investors are interested in financing your operation. They are willing to give you $2,500,000 but they want 50% ownership of your product and warehouse. They are also willing to lend you $2,500,000 at 3.5% interest rate. The rate of inflation is 2%. Question: at this point, do you feel you should go ahead with your plans to mass-produce the enhanced battery or should you simply keep your money in stocks? Why?