Please I need Help, ? Assume that a national restaurant firm called BBQ builds 1

Question

Please I need Help, ?

Assume that a national restaurant firm called BBQ builds 12 new restaurants at a cost of $1 million per restaurant. It outfits each restaurant with an additional $200,000 of equipment and furnishings. To help partially defray the cost of this expansion, BBQ issues and sells 240,000 shares of stock at $30 per share. What is the amount of economic investment that has resulted from BBQ's actions? Round your answer to one decimal place. $ million How much purely financial investment took place? Round your answer to one decimal place. $ million

Explanation / Answer

Total cost = (1,000,000 + 200,000)*12 = 14,400,000
Investment capital = 240,000*30 = 7,200,000
14,400,000 - 7,200,000 = 7,200,000

Economic Investment = $7,200,000
Financial Investment = $7,200,000

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