Should Erik buy the new equipment? Erik Morales was very angry with his brother. He had just come from a partnership meeting concerning the purchase of new equipment for their recording studio. His...

Should Erik buy the new equipment?

Erik Morales was very angry with his brother. He had just come from a partnership meeting concerning the purchase of new equipment for their recording studio. His brother, Juan, disagreed about purchasing the new equipment, stating that the business didn’t have enough cash to purchase the equipment without incurring additional debt. After thinking about their conversation, Erik decided that he would secure a loan to purchase the equipment. Erik knew that if his brother could just see how well the new equipment worked, Juan would change his mind. Should Erik buy the new equipment? What would you do?