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Thinking about building a second fast food restaurant

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The owner of Joe's Burgers is thinking about building a second fast food restaurant across town. The second restaurant would cost Joe $1 million to build. The owner, having more than enough money to build the new building (over $20 million deposited in the bank), states that she does not need to consider the current rate interest in deciding whether or not to build the new restaurant because she does not need to borrow the money. Is the owner correct in her statement about not needing to consider the market rate of interest? Please clearly.

Reference no: EM132186931

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