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A small commercial property is for sale near your university. Given its location, you believe a student-oriented business would be very successful there. You

 

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A small commercial property is for sale near your university. Given its location, you believe a student-oriented business would be very successful there. You have researched several possibili- ties and come up with the following cash flow estimates (including the cost of purchasing the property). Which investment should you choose? Project Book Store Initial Investment First-Year Cash Flow Growth Rate Cost of Capital $300,000 $63,000 3.0% 8% Coffee Shop $400,000 $80,000 3.0% 8% Music Store $400,000 $104,000 0.0% 8% Electronics Store $400,000 $100,000 3.0% 11%

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