Question
coffee costs $5, the person buys 250 cups of coffee per year, the return on investment is 6% annually, and the person will do for
coffee costs $5, the person buys 250 cups of coffee per year, the return on investment is 6% annually, and the person will do for 30 years. With these parameters, the person would end up with approximately $106,000 if they invested their money instead of buying coffee.
What percent of the $106,000 comes from the return on their investment?
With the 45-year time horizon, find a combination of the other parameters (coffee price, number of cups per year, and return on investment) that would result in the person having approximately $1,000,000 at the end of 45 years.
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Fundamentals of Cost Accounting
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