Mr. Hilton has been operating a bookstore as a single proprietorship. Recently he has received an offer of \(\$ 20,000\) for the net assets of the bookstore business. He is considering whether to sell the bookstore or to continue to operate it. Assume that:

(a) the bookstore annual income is \(\$ 15,000\),

(b) Mr. Hilton could find another job and earn \(\$ 14,000\) a year, and

(c) Mr. Hilton could invest the offer of \(\$ 20,000\) on bonds yielding \(8 \%\) per year.

Required: (ignore the gain or loss on sale of assets):

(1) What is the opportunity cost per year for operating the bookstore?

(2) Should Mr. Hilton sell the bookstore? Why?