Question
In: Economics
Suppose you decide to open a digital photo printing store. You rent store space (signing a...
Suppose you decide to open a digital photo printing store. You rent store space (signing a one-year lease) and you take out a loan at a local bank and use the money to purchase 10 digital photo printing machines. Six months later a large chain opens a photo printing store two blocks away from yours. As a result, the revenue you receive from your photo printing store, while sufficient to cover the wages of your employees and the costs of paper and utilities, doesn’t cover all of your rent and the interest and repayment costs on the loan you took out to purchase the printing machines. Should you continue operating your business?
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
A corporation is trying to decide whether to open a new factory outlet store. The store...
A corporation is trying to decide whether to open a new factory
outlet store. The store will have high, medium, or low demand.
Before it decides whether to open the store, the corporation can
pay $7,000 immediately for a market survey. The market survey can
predict 'high,' 'medium,' or 'low' demand. If the actual demand of
the store will be high, there is a 0.6 probability the survey will
predict 'high' demand, a 0.06 probability the survey will predict
'medium'...
2. Suppose that you have $250 to invest. a. You decide to store the $250 cash...
2. Suppose that you have $250 to invest.
a. You decide to store the $250 cash under your mattress. If
inflation is 3%, what will be the real value of that cash after one
year under the mattress?
b. If the nominal interest rate for a typical savings account is
1%, how much would the $250 be worth if you kept it in a savings
account for 1 year?
c. How much money did you lose by not depositing the...
Suppose you decide to invest in corporate bonds. Accordingly, you visit a bond store. You see...
Suppose you decide to invest in corporate bonds. Accordingly,
you visit a bond store. You see 3 bonds on the shelf. One is priced
at $1,015.53, another is priced to sell at $1,300.00, and a third
is selling at a discounted amount of $876.06. All have a $1,000.00
face value, and carry equal risk. From your reading, and from class
lecture, you know that you will be earning the same rate on your
investment, regardless of which bond(s) you purchase....
You are considering two options for a new digital printing machine. Option A will last you...
You are considering two options for a new digital printing
machine. Option A will last you 3 years and will cost $12,000.
Option B will last 5 years and will cost $16,000. If you are
planning to take a loan, at what interest rate would you be
indifferent to the two options. (Hint: Use Goal Seek)
A.
31.15%
B.
8.65%
C.
18.01%
D.
9.50%
Suppose you own a house where you live and a condo for rent. The monthly rent...
Suppose you own a house where you live and a condo for rent. The
monthly rent is $1,600 and you will get it at the
end of each month. Yet you have to pay maintenance fees and
insurance premium. They are
$600 per month in total. The property tax is proportional to the
(present) value of the property.
The tax rate is 0.1% per month and you pay the tax every month on
the last day of each month
with...
You and your partners have decided to open a small printing and copying business in a...
You and your partners have decided to open a small printing
and copying business in a college town of 100,000 people in Canada.
Your business will compete with companies like FedEx Office. You
know that over 50% of small businesses fail in their first year, so
to increase your chances of success, you have decided to perform a
detailed analysis of the task environment of the copying business
to discover what opportunities and threats you will
encounter.
1. Decide what...
Assume you will start a new restaurant and rent space for your business in a strip...
Assume you will start a new restaurant and rent space for your
business in a strip mall or 3-story office building in Fairfax
County, Virginia. Pick a name for your business consistent with
your business form. You would like to start a Limited Liability
Company (LLC). Assume you will be an owner and an employee of your
business. Explain the following:
* What level of liability exposure does your business form
create?
* How many employees will you have...
Assume you will start a new restaurant and rent space for your business in a strip...
Assume you will start a new restaurant and rent space for your
business in a strip mall or 3-story office building in Fairfax
County, Virginia. Pick a name for your business consistent with
your business form. You would like to start a Limited Liability
Company (LLC). Assume you will be an owner and an employee of your
business. Explain the following:
Your business has expanded overseas to the country of Belai.
During a visit to your overseas location you find...
Assume you will start a new restaurant and rent space for your business in a strip...
Assume you will start a new restaurant and rent space for your
business in a strip mall or 3-story office building in Fairfax
County, Virginia. Pick a name for your business consistent with
your business form. You would like to start a Limited Liability
Company (LLC). Assume you will be an owner and an employee of your
business. Explain the following:
Draft one contract clause that relates to a specific area of
your business (Between you and your landlord). Make...
You are an entrepreneur who will be starting a t-shirt business. Your company will rent space...
You are an entrepreneur who will be starting a t-shirt business.
Your company will rent space inside the mall. You will buy plain
t-shirts and imprint them with one of twelve pictures exclusively
designed for your company by a famous artist who is a friend of
yours. Your target customers are teenagers and young adults and you
plan on selling your t-shirts for $15 each. Your business is
scheduled to open on June 1, 2019. Below is the cost information...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Paymaster Enterprises has arranged to finance its seasonal working-capital needs with a short-term bank loan. The...
- TOWS matrix of WOW MOMO
- Write an anecdotal lead with a person focus from the following information; include a nut graph....
- Step 1 Picture yourself as a Senior Product Manager in your favorite industry. This could be...
- Gauss Jordan elimination using python for a 2d list (3x3) without using any library. Thanks
- What are some of the greatest barriers preventing our schools from meeting the educational goals for...
- What aspect of the materials used in nanotechnology differentiates it from the nanoscale devices that the...
ADVERTISEMENT