Paul Swanson has an opportunity to acquire a franchise from The Yogurt Place, Inc., to dispense frozen yogurt products under The Yogurt Place name. Mr. Swanson has assembled the following information relating to the franchise:
- A suitable location in a large shopping mall can be rented for $3,500 per month.
- Remodeling and necessary equipment would cost $318,000. The equipment would have a 20-year life