Suppose That You and Your Four Siblings Are Given an Opportunity

question 13

Essay

Suppose that you and your four siblings are given an opportunity to purchase a video rental store. Each of you would put up $50,000. The revenue from the store is expected to remain $350,000 per year for the next several years. The costs (not including the opportunity costs of your investment) of operating the store are expected to remain steady at $320,000 for the next several years. The current market rate of interest is 5 percent per year. Should you go in on this deal? Explain.

---

Definitions:

Crime Of Passion

A criminal act, often a violent crime such as murder, committed in a moment of strong emotion or under the influence of a sudden impulse without premeditation.

Property Crime

Crimes that involve the theft or destruction of someone else's property, such as burglary, larceny, arson, and theft.

Relatively Rational

decision-making or thinking that is sensible within a specific context, acknowledging that rationality can vary based on circumstances and perspectives.

Little Decision Making

Situations where individuals have minimal or no choice in the decisions affecting them.