Stephen Zehnder, an enterprising engineer, wants to get into business. He is looking at the following two alternatives. He has compiled the cost data for both alternatives as shown in table below. If Stephen wants to have at least a rate of return of 12% on this business investment, which one should he choose?
Data Convenience Store with Gas Ice Cream Store
Initial Cost $80,000 $120,000
Net Income $12,000 $ 20,000
After 20 years, he plans to sell the business at double the initial cost.