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Use the information below to answer the following question(s): three alternatives: 1. Sell the restaurant now and retire. 2. Hire someone to manage the restaurant
Use the information below to answer the following question(s): three alternatives: 1. Sell the restaurant now and retire. 2. Hire someone to manage the restaurant for the next year and retire. This will require the owner to spend $50,000 now, but will generate 2. $100,000 in profit next year. In one year the owner will sell the restaurant for $350,000. 3. Scale back the restaurant's hours and ease into retirement over the next year. This will require the owner to spend $40,000 on expenses now, but will generate $75,000 in profit at the end of the year. In one year the owner will sell the restaurant for $350,000. If the discount rate is 15%, the alternative with the lowest NPV is: #1 with an NPV of approximately $350,000. \#2 with an NPV of approximately $341,300. \#3 with an NPV of approximately $329,570. \#2 with an NPV of approximately $400,000. None of these
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