1. StandTallandProsper (STP) is a small publishing company that creates, prints, and sells super hero comic books. For the first few years, sales were at a level that
allowed the owner, Drew, and his two employees to easily move the boxes of paper
and finished books around by themselves. Now Drew has 30 employees and brings
in large pallets of paper and sends out large pallets full of comic books. So far, the
company has relied on the paper and transport companies' forklifts to handle the
pallets. Given the number of employees, pallets are often in the way when neither
company is there to assist in moving them. Drew has decided that, even though it
will get light use, it is a good idea for STP to have its own forklift to move pallets out
of the way onto the heavy duty shelves that were in the warehouse when STP moved
in.
a. Drew considered leasing the forklift, but decided to buy it instead. Identify one
advantage for Drew to purchase a forklift and one disadvantage for Drew to
purchase a forklift. (1 point)