A firm needs $800 to start and has the following expectations:
Sales	$1,600
Expenses	$1,450
Tax rate 	33% of earnings
a.	What are earnings if the owners invest (use their own money) for the $800 needed to start?
b.	If the firm borrows $400 of the $800 at an interest rate of 10%, what are the firm's net earnings?
c.	What is the return on the owners' investment in each case? Why do the returns differ?
d.	If expenses rise to $1,500, what will be the returns in each case?
e.	In which case did the returns decline more?
f.	What generalization can you draw from the above?