Lottery Winner Assignment You have a friend who just won $5,000,000 in a lottery. He was a Music major in college, but wants to start his own business. He needs your help and wants you to apply your business skill. After all, you are studying business! He said he has been racking his brain. His top choice is a pet store because he likes animals. He is thinking of rescuing dogs, feeding them well and trying to find homes for them. He has found a property on 5th Avenue and 69th Street that is for rent. The property could also be for sale. He said his girlfriend does not like the pet store idea. She recommends an Arby's franchise. Her reasoning is that there are few Arby's in New York. She feels that roast beef is better for you than hamburgers and that Arby's can basically put McDonald's and Burger King out of business. She recommends heavy advertizing to ensure success. Your friend asks for your best analysis of the situation. A third idea your friend came up with is a self-service car wash. He says he has done research on the topic and cannot find a self-service car wash in the Bronx. He says that the large population of the borough and the large number of cars mean that the business is totally unique. No one has thought of it before. He has staked out a small area near a storage business in the South Bronx. With some plumbing work, a simple car wash service could be set up. It would be open 24 hours. Customers would be asked to pay with quarters in the water and soap machines in the two cubicles planned. He asks for your help to find out how many approvals are needed for this business. He thinks your business skill could help him get a loan for the business. He wants your best plan as soon as possible to get the business moving, if that becomes the top choice. Your job is to assess all three alternatives and give your friend sound advice.

Question :

Remember, do not insult your friend or his girlfriend. Remember, this is a Finance course. Your response must give sound financial advice. Here are a few important considerations to address:

The Lottery:

1. How much will be left after the taxes are paid on the lottery?

Pet Rescue

1.Isn't Fifth Avenue pretty expensive? How about 12th Avenue?

2.How much will you charge for the rescued dogs? Will that cover the operating costs?

Car Wash 1.

If the money isn't locked/protected at night, how do you know it will be there in the morning?

2. Wouldn't the cubicles make a good place for people to do various illegal things at night?

3. Aren't there a bunch of car washes in the area? Wouldn't that be a better idea? But wouldn't there be too many car wash places if you go ahead with this idea?

Answer rating: 100% (QA)

The Lottery 1 After winning 5000000 in the lottery your friend will need to consider taxes The exact amount that will be left after taxes depend on va... View the full answer