Originally posted by Kevmeister
I just revisited this thread as I was thinking about it lately.
Fredo states he gets a 20% gross return per annum.
What is the typical lifetime of such a vending machine?
If based on the lifetime of the vending machine we factor in depreciation then what is the return then?
We shouldn't forget that despite getting a 20% gross return the plant itself is depreciating to zero value.
And (just to maintain a connection to Real Estate), if the machines were purchased with 80% OPM (other people's money), what would the returns be like then?