Suppose that Home Depot decides to add a coffee shop in the middle of the store to encourage more browsing by customers. This business will hire some additional employees, but analysts believe the coffee shop will require the store general manager to work 15 more hours per week. This will increase the general manager's salary by $16,201.00 per year. Home Depot has a 39.00% tax rate, a 12.00% cost of capital, and is evaluating this project over a 6.00-year period. What is the net opportunity cost to adding the coffee shop? (HINT: Value the extra gain in the manager's salary. EXPRESS as a positive number) Submit Answer format: Currency: Round to: 2 decimal places.
Suppose that Home Depot decides to add a coffee shop in the middle of the store to encourage more browsing by customers. This business will hire some additional employees, but analysts believe the coffee shop will require the store general manager to work 15 more hours per week. This will increase the general manager's salary by $16,201.00 per year. Home Depot has a 39.00% tax rate, a 12.00% cost of capital, and is evaluating this project over a 6.00-year period. What is the net opportunity cost to adding the coffee shop? (HINT: Value the extra gain in the manager's salary. EXPRESS as a positive number) Submit Answer format: Currency: Round to: 2 decimal places.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A 283.
Transcribed Image Text:Suppose that Home Depot decides to add a coffee shop in the middle of the store to encourage more browsing by
customers. This business will hire some additional employees, but analysts believe the coffee shop will require the
store general manager to work 15 more hours per week. This will increase the general manager's salary by $16,201.00
per year. Home Depot has a 39.00% tax rate, a 12.00% cost of capital, and is evaluating this project over a 6.00-year
period. What is the net opportunity cost to adding the coffee shop? (HINT: Value the extra gain in the manager's salary.
EXPRESS as a positive number)
Submit
Answer format: Currency: Round to: 2 decimal places.
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