Why the rental cost reduction should be 10*6 and 20*6? Where the "20" comes from?
- New cost = Investment*Percentage to be paid by client – Savings in months 0-6 – Savings in months 6-12
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New cost = 2.000*0,7 – 10*6 – 20*6 = 1.400k – 60k – 120k = $1.220k
Hi Francesco, thanks very much. But why savings in month 6-12 should be 20K*6 instead of 10k*6? Thanks again.
Hi Mavis, since the current rent is 72K and the new one in month 6-12 would be 52K, the difference each month would be 20K. Thus in the 6-month period you get a saving of 20K*6. Hope this helps!