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  3. 2 good sleep inc is considering the purchase of a...

Question: 2 good sleep inc is considering the purchase of a...

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2. Good Sleep Inc. is considering the purchase of a new mattress assembler that allows the construction of multiple firmness levels in the same mattress. Good Sleep anticipates the following 5-year earnings stream from the sale of this mattresS. Years in the Future Anticipated Profit (000s) 24 26 28 30 4 If the discount rate is 10% and the machine costs $90 (000), payable at once, what is the net present value of the machine? Is it a good purchase? (Write out the net earnings stream to generate your answer) Net Present Value Good purchase?:3. Joe Holiday has the opportunity to operate a business renting beach umbrellas next summer. He will operate the concession for 3 months. Looking at weather patterns, Joe observes that rain is frequent along this stretch of beach, and on average, there are 60 rentable days in a summer. In each of these days, Joe believes he can rent 40 umbrellas per day at $7 per rental. Joe will run the concession by himself day, and must pay Beachcomber Enterprises $9,000 for the concession (the use of the umbrellas and for the beachfront rental location) Suppose Joe could earn $4500 working construction. a. What are Joes Accounting Profits for undertaking the business? What are his Economic Profits Accounting profits (π Economic profits (): these profits attributable? Positive economic profits? (Y/N) Justification:

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