Stephen zehnder an enterprising engineer wants to get into

Assignment Help Econometrics

Reference no: EM13379122

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: EM13379122

Questions Cloud

Barry a texas crude company engineer who did not take : barry a texas crude company engineer who did not take engineering economy while studying at tech recommended that texas

John davis a recent ie graduate from tennessee : john davis a recent ie graduate from tennessee technological university bought an suv for 30000 with a down payment of

Fancy gadgets inc has developed a new thing-a-may-jig at a : fancy gadgets inc. has developed a new thing-a-may-jig at a cost of 2000000. projected profits from the sale of

Two hazardous environment facilities are being evaluated : two hazardous environment facilities are being evaluated with the projected life of each facility being 10 years. the

Stephen zehnder an enterprising engineer wants to get into : stephen zehnder an enterprising engineer wants to get into business. he is looking at the following two alternatives.

A monopolist has determined that marginal revenue is 200 : a monopolist has determined that marginal revenue is 2.00 and average cost is 1.75. it has also determined that the

Sam currently earns 30000 per year the governments is : sam currently earns 30000 per year. the governments is considering a policy that would increase sams income by 12 but

The federal reserve board of governors recently changed the : the federal reserve board of governors recently changed the reporting of its stance on monetary policy from what they

The world of videos operates a retail store that rents : the world of videos operates a retail store that rents movie videos. for each of the last 10 years world of videos has

User Account

All Pages