Interest rate on investments in the economy

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Kenji is working for an advertising firm making $60,000 per year but considers starting his own advertising company. Kenji has determined that to launch the business, he needs to invest $100,000 of his own funds. The annual cost of running the business will include $75,000 for the rent of the office space, $190,000 for employee wages, and $6,000 for materials and utilities. Kenji plans to manage the business, which means that he will have to quit his current job. Suppose that the interest rate (or rate of return) on investments in the economy is 6%.

Kenji's total explicit cost per year is ?

Kenji's total cost per year is ?

Reference no: EM13869349

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