Question
Can you help me with this question please In 2017, Burt approached The Count Smartnrich with two business opportunities: (i) Weworkonline an online workplace platform,
Can you help me with this question please
In 2017, Burt approached The Count Smartnrich with two business opportunities:
(i)" Weworkonline" an online workplace platform, which requires a capital investment of $ 3 million. This business would require Count to commit full time. Thus, the Count would have to leave existing employment as head accountant at Apple-berry Investment limited which pays him $8 million.
(ii)" Nothanksgerms" a hand sanitizer manufacturing company, which requires a capital investment of $ 50 million. This business would not require any time commitment from the Count.
Both businesses are expected to make $25 million in profit during first year of operation. However, the Count would have to sell his US, GOV. 15/28 bonds which he bought at par and yield 6.750% per year.
A.Calculate which business will yield the highest economic profit for the Count. State which business opportunity would be best for investment.
In 2018, regardless of investments from the Count, Burt decides to start "Nothanksgerms" which operates under a prefect competitive market structure.Associated costs and revenues are presented below:
B.Fill in the blanks for the firm.
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