Question
Suppose Natasha currently makes $40,000 per year working as a manager at a cable TV company. She then develops two possible entrepreneurial business opportunities. In
Suppose Natasha currently makes $40,000 per year working as a manager at a cable TV company. She then develops two possible entrepreneurial business opportunities. In one, she will quit her job to start an organic soap company. In the other, she will try to develop an Internet-based competitor to the local cable company. For the soap-making opportunity, she anticipates annual revenue of $465,000. She estimates the costs for the necessary land, labor, and capital to be $435,000 per year. For the Internet opportunity, she anticipates costs for land, labor, and capital of $3,200,000 per year and revenues of $3,275,000 per year.
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