Your brother, Jackson, was laid off from his job with a large and famous software company. He would like to sell his stock in the company and use the proceeds to start a restaurant. The stock is currently valued at $500,000. He received a job offer from a competitor that will pay $90,000 per year plus benefits. He asked you to help him decide the best course of action.

REQUIRED

A. What are the alternatives that Jackson faces?

B. Choose the most appropriate analysis technique and explain your choice.

C. If your brother chooses to open a restaurant, what are his opportunity costs?

D. List the steps you would take to develop a spreadsheet that your brother could manipulate to help with the quantitative aspects of this decision. Assume that you only have time to set up a template and that your brother will fill in the specific information. However, you need to tell him the general categories of information he will need to gather.

E. List uncertainties about whether taking the job offer would turn out well for your brother. List as many uncertainties as you can.

F. List uncertainties about whether opening a restaurant would turn out well for your brother. List as many uncertainties as you can.

G. Explain why it is possible for your brother to make a good decision even though he cannot know for sure how well his alternatives would work out.