Walters wants more time to spend with family and is looking at purchasing a second home on the Florida coast. It’s close to the water, which she likes, and also close to golf courses that she also likes. She has visited this area of Florida before and despite recent hurricanes, property values are stable. Her family wants to come and visit but they also want to travel with their grandchildren to Europe and Asia so they can only guarantee that they will visit for a week a year. She is worried about managing a large second home from a distance given her busy professional life. But she knows without careful caretaking, the value of her vacation home will deteriorate. When she considers her options, she realizes she also wants to travel with her family.
Walters is also looking at a 10% interest in a brand new 5 state room fractional yacht for $400,000. She likes the idea of owning a brand new yacht that could travel to destinations around the world where she could spend time relaxing and with family. She could golf at top caliber courses in the Caribbean and around Europe as well as up and down the Atlantic seaboard. She also likes the idea of independent hassle free management so that her time on vacation is focused on relaxation and enjoyment. To compare the two options she creates the following table: