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Suppose you had a hobby that you thought you could turn into a profitable business. You have $5000 saved up, and you borrow another $5000
Suppose you had a hobby that you thought you could turn into a profitable business. You have $5000 saved up, and you borrow another $5000 from the bank at 5% interest. You spend 10 hours a week for one year (say, 50 weeks) developing the business. What rate of return do you need on the $10,000 invested in the business to make it worth going ahead with this project
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