Doris Halloran has been asked to invest in her friend Roger's new business venture. The new...

  

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Doris Halloran has been asked to invest in her friend Roger's new business venture. The new business will consist of three food trucks operating in the downtown business district of a large metropolitan area. Roger is asking Doris to invest $80,000 in the business and assures her that it will make enough money to return $20,000 in profits per year to her. Calculate the estimated retum on investment (to one decimal place) that Doris would achieve if Roger is correct. Also, calculate the returns Doris would achieve if the restaurant is only profitable enough to return to her $15,000, $10,000, or $5000 and then answer the questions that follow. Investment Estimated Profits Estimated Return on Investment (ROI) (%) Amount ($) to be Returned ($) 80,000 20,000 80,000 15,000 80,000 10,000 80,000 5,000 a. Assume that Doris has $80,000 available to invest. What are some factors she should consider before deciding to help Roger in his new business venture? b. What specific information do you think Doris would want Roger to provide her prior to making her investment decision? Doris Halloran has been asked to invest in her friend Roger's new business venture. The new business will consist of three food trucks operating in the downtown business district of a large metropolitan area. Roger is asking Doris to invest $80,000 in the business and assures her that it will make enough money to return $20,000 in profits per year to her. Calculate the estimated retum on investment (to one decimal place) that Doris would achieve if Roger is correct. Also, calculate the returns Doris would achieve if the restaurant is only profitable enough to return to her $15,000, $10,000, or $5000 and then answer the questions that follow. Investment Estimated Profits Estimated Return on Investment (ROI) (%) Amount ($) to be Returned ($) 80,000 20,000 80,000 15,000 80,000 10,000 80,000 5,000 a. Assume that Doris has $80,000 available to invest. What are some factors she should consider before deciding to help Roger in his new business venture? b. What specific information do you think Doris would want Roger to provide her prior to making her investment decision?

Answer rating: 100% (QA)

The estimated return on investment ROI Doris would achieve if Roger is correct would be RO... View the full answer