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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 409 Weeks Ago, 1 Day Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
[[Problem]]
Choosing among Alternative Plans
Suppose you started a Web site hosting business and then decided to return to school. Now that you are back in school, you are considering selling the business within the next year. An investor has offered to buy the business for $200,000 whenever you are ready. If the interest rate is 10%, which of the following three alternatives is the best choice?
1. Sell the business now.
2. Scale back the business and continue running it while you are in school for one more year, and then sell the business (requiring you to spend $30,000 on expenses now, but generating $50,000 in profit at the end of the year).
3. Hire someone to manage the business while you are in school for one more year, and then sell the business (requiring you to spend $50,000 on expenses now, but generating $100,000 in profit at the end of the year).
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