Question
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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