Mike owned a retail liquor store that he operated from a leased building and lot. Faced with renewing his lease for five years at a significant increase, he was looking to build his own store on a nearby lot. In considering whether to buy the lot and build, Mike had to decide what kind of new store to build (and in effect, whether to enter the wine retailing business that was new to him). (A Microsoft Excel model is available for use with this case, product 7A98E032.)
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