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

question 19

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 interest rate is 7%,the NPV of alternative #3 is closest to:

• A)$350,000.
• B)$357,196.
• C)$370,561.
• D)$401,121.

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Definitions:

Social Networks

Online platforms that connect people, allowing them to share information, interests, and form virtual communities.

Geographically Dispersed

Refers to entities, such as teams or organizations, that are spread out over a wide geographic area, often necessitating remote communication and collaboration.

Website

A collection of related web pages, including multimedia content, typically identified with a common domain name and published on at least one web server.

Journal Entries

Journal entries are records of financial transactions in the accounting system of a business, marking debits and credits in accounts.