(b) Samuel Gumede earns £39,000 a year working for a building company as aproject manager. He is considering the possibility of leaving the companyand starting his own business. To do this, he will have to use all his £60,000savings that are currently invested at an interest rate of 2%. He estimatesthat the annual profit from his own business will be £50,000. Other relevantcosts in starting his own business amount to £1,750.Required:Using the information above, calculate the net relevant benefit of Samuelstarting his own business.

A business is an organization entirely made for earning profits or for fulfilling social needs by…

Answered: (b) Samuel Gumede earns £39,000 a year…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter13: Investing In Mutual Funds, Etfs, And Real Estate

Section: Chapter Questions

Problem 9FPE

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