Mr. X is a 30-year-old employed with XYZ with a salary of $2 million per year. He has the following pre- existing assets: a) $500,000.00 in his savings account which yields a net of 5% per year on his principle and b) rental income of $100,000 per year on a warehouse that he inherited.

The following opportunities were presented to Mr. X.

1. Company X (a manufacturing company) with sales of $ 5 million and cost of operation of $1.2 million per year. This company would require his full-time commitment, along with a capital investment of $250,000 and the use of his warehouse.
2. II. Company Y (a tech company) with sales of $ 5 million and cost of operation of $2 million per year. This company would NOT require his full-time commitment, only a capital investment of $500,000. A. Calculate the economic profit per year for each of the opportunities (I, II) and rank the opportunities based on the best economic outcome (10

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