Problem
A venture group is contemplating investment in either of the following projects:
a. Establish a cosmetic store with an initial cost of $100,000 and an annual net income of $20,000; the business is estimated to have a resale value of $300,000 after a four-year life.
b. Take over a beauty parlor with an $80,000 initial payment and an annual net income of $25,000 for four years. The lease will end at the end of the four years with no obligation on either side. He will pay you $2,000 to make him a recommendation based on sound economic analysis. What would you recommend?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.