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university of southern california Operations And Supply Chain Management Assignment Help - The owner


Question - The owner of a comer lot wants to find a use that will yield a desirable return on his investment. After
much study and calculation, the owner decides that the two best alternatives are:
Build Soft
BuildIce Cream
Gas StationStand
First cost$80,000$120,000
Annual property taxes 3,0005,000
Annual income11,00016,000
Life of building, in years 2020
Salvage value00
If the owner wants a minimum attractive rate of return on his investment of 6%, which of the two
alternatives would you recommend?.

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