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A Small Hamburger Stand Has Seating for 12 People

Question 64

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A small hamburger stand has seating for 12 people.They are considering adding seating for 6 or 12 more people.Profit is currently 28,800 per year.The owner thinks the profit would be 46,080 if 6 additional seats and 63,360 if 12 more seats are added.What is the present value of each option,assuming a 15% discount rate for the next year?

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28,800/1.15 = $24,04...

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