Find initial cost and net income

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Reference no: EM13180738

Stephen Zehnder, an enterprising engineer, wants to get into business. He is looking at the following two alternatives. He has compiled the cost data for both alternatives as shown in table below. If Stephen wants to have at least a rate of return of 12% on this business investment, which one should he choose?

Data Convenience Store with Gas Ice Cream Store

Initial Cost $80,000 $120,000

Net Income $12,000 $ 20,000

After 20 years, he plans to sell the business at double the initial cost.

Reference no: EM13180738

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