Chris LeBlanc estimates that if he does 4.5 hours of research using data that will cost $175.00, there is a good chance that he can improve his expected return on a $10,000, 1-year investment from 6.2% to 9.2%. Chris feels that he must earn at least $30.00 per hour on the time he devotes to his research. a. Find the cost of Chris's research. b. By how much (in dollars) will Chris's return increase as a result of the research? c. On a strict economic basis, should Chris perform the proposed research?
Chris LeBlanc estimates that if he does 4.5 hours of research using data that will cost $175.00, there is a good chance that he can improve his expected return on a $10,000, 1-year investment from 6.2% to 9.2%. Chris feels that he must earn at least $30.00 per hour on the time he devotes to his research. a. Find the cost of Chris's research. b. By how much (in dollars) will Chris's return increase as a result of the research? c. On a strict economic basis, should Chris perform the proposed research?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Chris LeBlanc estimates that if he does
4.5
hours of research using data that will cost
$175.00,
there is a good chance that he can improve his expected return on a
$10,000,
1-year investment from
6.2%
to
9.2%.
Chris feels that he must earn at least
$30.00
per hour on the time he devotes to his research.a. Find the cost of Chris's research.
b. By how much (in dollars) will Chris's return increase as a result of the research?
c. On a strict economic basis, should Chris perform the proposed research?
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