Construct choice table for interest rates

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The south End bookstore has an annual profit of $370,000. The owner i considering opening a second book store on the north sde of the campus. He can lease an existing building for 5 years with an option to continue te lease for a second 5-year period. If he opens the second bookstore, he expects the existing stor will lose some business that will he gained by "The North End," the new bookstore. It will take $1,200,000 of store fixtues and inventory to open The North End. He believes that the two stores will have a combined profit of $560,000 a year after all the expenses of both stores have been paid. The owne's ecnomic analysis is based on a 5-year period. He will be able to reover this $1,000,000 investment at the end of 5 years by selling the store fixtures and inventory. (a) construct a choice table for interest rates from 0% to 100%. (b) If the North end is opened, what rate of return can he expect?

Reference no: EM131392550

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