Use the Information Below to Answer the Following Question(s)

question 45

Multiple Choice

Use the information below to answer the following question(s) :
The owner of the Krusty Krab is considering selling his restaurant and retiring.An investor has offered to buy the Krusty Krab for $350,000 whenever the owner is ready for retirement.The owner is considering the following three alternatives:
1.Sell the restaurant now and retire.
2.Hire someone to manage the restaurant for the next year and retire.This will require the owner to spend $50,000 now,but will generate $100,000 in profit next year.In one year the owner will sell the restaurant for $350,000.
3.Scale back the restaurant's hours and ease into retirement over the next year.This will require the owner to spend $40,000 on expenses now,but will generate $75,000 in profit at the end of the year.In one year the owner will sell the restaurant for $350,000.
-If the discount rate is 15%,then the alternative which the owner should choose is:

• A)#1.
• B)#2.
• C)#3.
• D)either #1 or #2.
• E)either #1 or #3.

---

Definitions:

SiO Content

Refers to the concentration of Silicon Dioxide, a common compound found in the Earth's crust, often significant in determining the composition of rocks and soils.

Mafic Minerals

Dark-colored minerals that are rich in magnesium and iron, typically found in basalt and other mafic rocks.

Quartz

A hard, crystalline mineral composed of silicon and oxygen atoms, used in making jewelry, electronics, and optical devices.

Potassium Feldspar

A group of aluminum silicate minerals that contain potassium, commonly found in igneous and metamorphic rocks.