Norman Dowd owns his own taxi, for which he bought a $10,100 permit to operate two years ago. Mr. Dowd earns $30,300 a year operating as an independent but has the opportunity to sell the taxi and permit for $37,000 and take a position as dispatcher for Carter Taxi Co. The dispatcher position pays $28,000 a year for a 40-hour week. Driving his own taxi, Mr. Dowd works approximately 55 hours per week. If he sells his business, he will invest the $37,000 and can earn a 9 percent return.
