knukk

Assignment 4
You have a website that is budgeted to generate $ 27 000 in revenues pr year the next 4 years.
Webhost costs are $ 1 000 pr year. Advertising costs are $ 2 000 pr year.
You outsource the article writing for the website. You will put on 40 articles pr month, 25 of which are 600 words (per article). The rest are 1000 words per article.
You will pay the article writer $4/100 words.

It is expected that you can sell it for $ 25 000 in 4 years.
Someone is offering you $ 50 000 for the website now.
The rate of return is 10 %.
What do you do - sell it now or keep it running and then sell it after 4 years?

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