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Problem: Assume that a national restaurant firm called BBQ builds 20 new restaurants at a cost of $1 million per restaurant. It outfits each restaurant with an additional $300,000 of equipment and furnishings. To partially defray the cost of this expansion, BBQ issues and sells 400,000 shares of stock at $35 per share.
Instructions: Round your answers to one decimal place.
Question 1: What is the amount of economic investment that has resulted from BBQ's actions?
Question 2: What is the amount of financial investment that has resulted from BBQ's actions?
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