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Carni Vore represents a meat sandwhich restautant chain that is expanding into a new, large metropolitan area. He currently has $2 million to invest and

Carni Vore represents a meat sandwhich restautant chain that is expanding into a new, large metropolitan area. He currently has $2 million to invest and

wants to open several restaurants. He found out that each site will require a cash outlay or $230,000 for leasing, equipment, and initial inventory. Carni is currently

looking at 20 sites. The first 15 sites have positive net present values; sites 16 through 20 have negative net present values.

A: What is the maximum number of restaurants that Carni can establish for his company? Explain.

B: How many restaurants can Carni open if his employer increases his budget to $5 million? Explain.

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