Chris LeBlanc estimates that if he does five hours of research using data that will cost $175, there is a good chance that he can improve his expected return on a $10,000, one-year investment from 6% to 9%. Chris feels that he must earn at least $30 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 reserach?
Chris LeBlanc estimates that if he does five hours of research using data that will cost $175, there is a good chance that he can improve his expected return on a $10,000, one-year investment from 6% to 9%. Chris feels that he must earn at least $30 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 reserach?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Chris LeBlanc estimates that if he does five hours of research using data
that will cost $175, there is a good chance that he can improve his
expected return on a $10,000, one-year investment from 6% to 9%. Chris
feels that he must earn at least $30 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 reserach?
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