A small commercial property is for sale near your university. The cashflows are growth perpetuities. Which investment should you choose?

Question 6Select one:

A.

Rare Coin Shop

B.

Coffee Shop

C.

Clothing Store

D.

Restaurant

E.

None of the choices have positive NPVs

\begin{tabular}{|l|c|c|c|c|} \hline Project & InitialInvestment & First-YearCashFlow & Growth Rate & CostofCapital \\ \hline Rare Coins shop & $500,000 & $60,000 & 4.00% & 11% \\ \hline Coffee shop & $300,000 & $90,000 & 2.00% & 8% \\ \hline Clothing store & $200,000 & $140,000 & 0.00% & 8% \\ \hline Restaurant & $600,000 & $200,000 & 8.00% & 15% \end{tabular}