To deal with a seasonal peak in demand, a gardening company needs to rent 10 lawn mowers for 5 months. The rental of the 10 mowers, 500 euros (after
tax) in total for all 5 months, will have to be paid fully in advance at the beginning of the first month. This 500 include a safety deposit of 100 euros (after-tax)
to be returned at the end of the rental period when the mowers are returned. The additional after tax money coming to the company from the ability to satisfy
this peak in seasonal demand is 300 euros every month except for the last month when they will get the same 300 euros but in addition they will get the
refund of the deposit. Represent this investment in the typical way.
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