Suppose Natasha currently makes $ 50,000 per year working as a manager at a cable TV company. She then develops two possible entreprenuiral business opportunities. In one, she will quit her job to start an organic soap company. In the other, she will try to develop an Internet-based competitor to the local cable company. For the soap-making opportunity, she anticipates annual revenue of $ 465, 000 and costs for the necessary land, labor, and capital of $ 395, 000 per year. For the Internet opportunity, she anticipates costs for land, labor, and capital of $ 3, 250,000 per year as compared to revenues of $ 3, 275,000 per year. What opportunity should she persue? a) She would persue the soap business b) She would persue the Internet business c). She would continue working for the cable TV company.
Suppose Natasha currently makes $ 50,000 per year working as a manager at a cable TV company. She then develops two possible entreprenuiral business opportunities. In one, she will quit her job to start an organic soap company. In the other, she will try to develop an Internet-based competitor to the local cable company. For the soap-making opportunity, she anticipates annual revenue of $ 465, 000 and costs for the necessary land, labor, and capital of $ 395, 000 per year. For the Internet opportunity, she anticipates costs for land, labor, and capital of $ 3, 250,000 per year as compared to revenues of $ 3, 275,000 per year.
What opportunity should she persue?
a) She would persue the soap business
b) She would persue the Internet business
c). She would continue working for the cable TV company.
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