The revenue from the cafeacute is expected to remain


Bailey, Kaylee, Haley, and Joyce are sorority sisters who have discovered an opportunity to purchase an Internet café. Each of the women would have to put up $80,000 to make the purchase. The revenue from the café is expected to remain constant at $225,000 per year for the next several years. The costs (not including the opportunity costs of the investment) of operating the café are expected to remain constant at $185,000 for the next several years. The current market interest rate on enterprises with comparable risks is 9% per year. Should the four sorority sisters purchase the café? Explain

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Microeconomics: The revenue from the cafeacute is expected to remain
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