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Peta Barend earns £33,000 a year working for a textile company as an engineer. She is considering the possibility of leaving the company and starting her own business. To do this, she will have to use all her £50,000savings that are currently invested at an interest rate of 3 per cent. She estimates that the annual profit from her own business will be £46,000. Othe relevant costs in starting her own business amount to £2,250. Required: Using the information above, calculate the net relevant benefit of Peta starting her own business.

Peta Barend earns £33,000 a year working for a textile company as an engineer. She is considering the possibility of leaving the company and starting her own business. To do this, she will have to use all her £50,000savings that are currently invested at an interest rate of 3 per cent. She estimates that the annual profit from her own business will be £46,000. Othe relevant costs in starting her own business amount to £2,250. Required: Using the information above, calculate the net relevant benefit of Peta starting her own business.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Peta Barend earns £33,000 a year working for a textile company as an engineer. She is considering the possibility of leaving the company and starting her own business. To do this, she will have to use all her £50,000savings that are currently invested at an interest rate of 3 per cent. She estimates that the annual profit from her own business will be £46,000. Othe relevant costs in starting her own business amount to £2,250. Required: Using the information above, calculate the net relevant benefit of Peta starting her own business.
Transcribed Image Text:Peta Barend earns £33,000 a year working for a textile company as an engineer. She is considering the possibility of leaving the company and starting her own business. To do this, she will have to use all her £50,000savings that are currently invested at an interest rate of 3 per cent. She estimates that the annual profit from her own business will be £46,000. Othe relevant costs in starting her own business amount to £2,250. Required: Using the information above, calculate the net relevant benefit of Peta starting her own business.
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