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Danny invested $100,000 of his own money to open a bar on the South Beach strip on Miami. Being in the business for several years,
Danny invested $100,000 of his own money to open a bar on the South Beach strip on Miami. Being in the business for several years, Danny did a thorough analysis and forecasted profits of the business that resulted in an internal rate of return of 16%. Danny researched alternative opportunities and found that he could invest $100,000 in a biotechnology company that was doing research for the Coronavirus. It's stock was trading at $1 per share, but rumor had it that the stock could double or even triple in 3-5 years. Of the choices below, what is Danny's best option. Do nothing. Keep your money in your checking account at the bank. Go with the bar on South Beach Instead of using his own money, borrow the 100K from a bank and use it to start the business. Danny could then use his own money to invest in the stock. O Go with biotechnology company. If it doubles his investment will be worth 200k. Danny invested $100,000 of his own money to open a bar on the South Beach strip on Miami. Being in the business for several years, Danny did a thorough analysis and forecasted profits of the business that resulted in an internal rate of return of 16%. Danny researched alternative opportunities and found that he could invest $100,000 in a biotechnology company that was doing research for the Coronavirus. It's stock was trading at $1 per share, but rumor had it that the stock could double or even triple in 3-5 years. Of the choices below, what is Danny's best option. Do nothing. Keep your money in your checking account at the bank. Go with the bar on South Beach Instead of using his own money, borrow the 100K from a bank and use it to start the business. Danny could then use his own money to invest in the stock. O Go with biotechnology company. If it doubles his investment will be worth 200k
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