1) Jose decides to open a restaurant. After analyzing costs and forecasting revenue he realizes he can earn about a 14% return on his investment. What factors must Jose think about in making his decision?

2) Justin is twenty years old and has saved 50,000. He can invest it in a real estate venture that will pay 15% annually for 10 years, and then in a mutual fund for an additional 10 years at a 9.75 annual return. He's hoping that in 20 years, when he is 40, he will have enough money to pay for his child's college education, estimated at about $75000 per year. Will he have enough?