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One thing's for sure: this is a much worse business case at 5% interest than at 0% interest. Borrowing money at 5% for an expensive machine that can be replace
by runeks 3y ago
One thing's for sure: this is a much worse business case at 5% interest than at 0% interest.
Borrowing money at 5% for an expensive machine that can be replaced by paying monthly salaries for labor is not a great business proposition. But it may be at 0% interest.
- dougSF70 3y agoThis is what I don't understand, the capital cost of a machine to replace humans only works if the productivity multiplier > amortized capital cost / annual labor cost. However there must be a limit to the multiplier due to market constraints...what if you can produce 10x pizzas but the demand isnt there. I have come to learn that individually start ups are just experiments and they only make it sense as a collective asset class.