The Owner of a Music Store Is Considering Remodelling the Store

question 43

Essay

The owner of a music store is considering remodelling the store in order to carry a larger inventory. The cost of remodelling and additional inventory is $43 200. The expected increase in net profit is $7000 per year for the next 3 years and $10 000 each year for the following 7 years. After ten years, the owner plans to retire and sell the business. She expects to recover the additional $40 000 invested in inventory but not the $43 200 invested in remodeling. Compute the rate of return.

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Definitions:

Covert Negative

Internal, negative thoughts or beliefs that are not openly expressed but influence feelings and behaviors.

Stimulus Control

The modification of behavior by manipulating the factors that trigger or discourage it.

Antecedent

An event, condition, or cause that precedes and potentially triggers an effect or outcome.

Emitted

Released or given off, often used in the context of substances, light, sounds, or signals.