1. Suppose Natasha currently makes $50,000 per year working as a manager at a cable TV company. She develops two possible entrepreneurial business opportunities. In one, she will quit her job to start a hand-made soap company. In the other, she will try to develop an Internet-based competitor to the cable company. For the soap-making opportunity, she anticipates annual revenue of $465,000 and costs for the necessary land, labour, and capital of $395,000 per year. For the Internet opportunity, she anticipates costs for land, labour, and capital of $3,250,000 per year as compared to revenues of

$3,275,000 per year. [LO2.3]

a. Should she quit her current job to become an entrepreneur?

b. If she does quit her current job, which opportunity should she pursue?