You and 99 other partners are offered the chance to buy a gas station. Each partner would put up $10,000. The revenues from the operation of the station have been steady at $420,000 per year for...

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You and 99 other partners are offered the chance to buy a gas station. Each partner would put up $10,000. The revenues from the operation of the station have been steady at $420,000 per year for several years and are projected to remain steady into the future. The costs (not including opportunity costs) of operating the station (including maintenance and repair, depreciation, and salaries) have also been steady at $360,000 per year. Currently, 5-year Treasury bills are yielding 7.5 percent interest. Would you go in on the deal? Explain your answer.

Answered Same Day Dec 24, 2021

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David answered on Dec 24 2021

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You and 99 other partners are offered the chance to buy a gas station. Each partner would put up $10,000. The revenues from the operation of the station have been steady at $420,000 per year for...

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