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What is the maximum price you would be willing to pay

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Question - Assume that fast-food restaurants generally provide an ROI if 15%, but such a restaurant near a college campus has an ROI of 18% because of its relatively large volume of business generates an above turnover. The replacement value of the restaurant's plant and equipment is $206,000. If you were to invest that amount in a restaurant elsewhere in town, you could expect 15% of ROI.

What is the maximum price you would be willing to pay for the restaurant near the campus?

Reference no: EM132978982

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