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a)$320250 (b)$328250 (c) Below 320000 (d) Above 330000 Your firm is preparing to open a new retail strip mall and you have multiple businesses that
a)$320250
(b)$328250
(c) Below 320000
(d) Above 330000
Your firm is preparing to open a new retail strip mall and you have multiple businesses that would like lease space in it. Each business will pay a fixed amount of rent each month plus a percentage of the gross sales generated each month. The cash flows from each of the businesses has approximately the same amount of risk. The business names, square footage requirements, and monthly expected cash flows for each of the businesses that would like to lease space in your strip mall are provided below: Square Feet Business Name Required Videos Now 4000 Gords Gym 3500 Pizza Warehouse 2500 Super Clips 1500 30 1/2 Flavors 1500 S-Mart 12,000 WalVerde Drugs 6000 Multigular Wireless 1000 Expected Monthly Cash Flow 70,000 52,500 52,500 25,500 28,500 180,000 147,000 22,250 If your new strip mall will have 16,000 square feet of retail space available to be leased. If you lease to the optimal combination of businesses given your retail space constraint, then the total monthly cash flow will be closest to? (3 pts]Step by Step Solution
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