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Le Marche coffee, with a net book value of $4,000,000, and total assets of $7,000,000, has a long history of earning 21%. Last year, the
Le Marche coffee, with a net book value of $4,000,000, and total assets of $7,000,000, has a long history of earning 21%. Last year, the coffee chain earned $1,500,000. The owner is considering acquiring another coffee shop in a nearby town. If the expansion increases income by 45%, what is the maximum amount of investment the owner can make in the new shop in order to maintain his desired 21% return?
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