ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
Assume that a national restaurant chain called BBQ builds 20 new restaurants at a cost of $1 million per restaurant. It outfits each restaurant with an additional $200,000 of equipment and furnishings. To help partially defray the cost of this expansion, BBQ issues and sells 400,000 shares of stock at $30 per share. Instructions: Enter your answers rounded to 1 decimal place. a. What is the amount of economic investment that has resulted from BBQ's actions? million b. How much purely financial investment took place? $ million %24 %24
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Transcribed Image Text:Assume that a national restaurant chain called BBQ builds 20 new restaurants at a cost of $1 million per restaurant. It outfits each restaurant with an additional $200,000 of equipment and furnishings. To help partially defray the cost of this expansion, BBQ issues and sells 400,000 shares of stock at $30 per share. Instructions: Enter your answers rounded to 1 decimal place. a. What is the amount of economic investment that has resulted from BBQ's actions? million b. How much purely financial investment took place? $ million %24 %24
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