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Question: Ashley Morgan estimates that if he does 15 hours of research using data that will cost $90, there is a good chance that he can improve his expected return on a $20,000, one-year investment from 7% to 10%. Ashley feels that he must earn at least $25 per hour on the time he devotes to his research.
a. Find the cost of Ashley's research.
b. By how much (in dollars) will Ashley's return increase as a result of the research?
c. On a strict economic basis, should Ashley perform the proposed research?
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