2.6 The Blume quintuplets, Aster, Dahlia, Iris, Jasmine, and Poppy, have an opportunity to purchase a wholesale

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2.6 The Blume quintuplets, Aster, Dahlia, Iris, Jasmine, and Poppy, have an opportunity to purchase a wholesale florist company. Each of the women would have to put up $300,000 to make the purchase. The revenue from the business is expected to remain constant at $650,000 per year for the next several years. The costs (not including the opportunity costs of the investment) of operating the florist are expected to remain constant at $530,000 for the next several years. The current market interest rate on enterprises with comparable risks is 9.25 percent per year. Should the Blume quintuplets purchase the wholesale florist? Explain.

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Principles Of Microeconomics

ISBN: 9780691150093

13th Global Edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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