Question
Adira works on USS Discovery where they make 50,000 strips of gold-plated latinum (GPL) per year after taxes. They get paid monthly and do not
Adira works on USS Discovery where they make 50,000 strips of gold-plated latinum (GPL) per year after taxes. They get paid monthly and do not save anything month to month. Working for Starfleet is currently the best use of Adira's time. Adira is considering giving up on Starfleet and setting up a food space-truck business instead. To set this up, they could buy a used shuttlepod for GPL50,000 - money that Adira has from past savings. Should Adira decide to sell the shuttlepod at any point, they would get back exactly GPL50,000. The annual rate of interest paid by Ferengi banks for deposits is 1%. 1. What is the opportunity cost to Adira of setting up their own business for a year?
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