Chris LeBlanc estimates that if he does 4.5 hours of research using data that will cost $77.00, there is a good chance that he can improve his expected return on a $10,000, 1-year investment from 8.1% to 9.9%. Chris feels that he must earn at least $20.50 per hour on the time he devotes to his research.
a. Find the cost of Chris’s research.
b. By how much(in dollars) will Chris’s return increase as a result of the research?
c. On a strict economic basis, should Chris perform the proposed research?