The Blume quintuplets, Aster, Dahlia, Iris, Jasmine, and Poppy, have an opportunity to purchase a wholesale florist

Question:

The Blume quintuplets, Aster, Dahlia, Iris, Jasmine, and Poppy, have an opportunity to purchase a wholesale florist company. Each of the women would have to put up $300,000 to make the purchase. The revenue from the business is expected to remain constant at $650,000 per year for the next several years. The costs (not including the opportunity costs of the investment) of operating the florist are expected to remain constant at $530,000 for the next several years. The current market interest rate on enterprises with comparable risks is 9.25 percent per year. Should the Blume quintuplets purchase the wholesale florist? Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: