You are deciding on whether to purchase an operating certificate to operate a limousine shuttle service to the airport for the next four yeurs. At the end of each year, you expect to receive net revenues equals to $100,000, $125,000. $150.000 and $175.000. You have an initial cost outplay equal to $350,000 and in each of the four years you could work for another limousine company for $40,000 per year

1. If the interest rate is expected to be 8% over the 4 year period, what is the maximum amount of money that you would be willing to pay for the operating certificate? Would you enter into this business?