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Acomherciai foal estate developer is considering several opbions for devaloping a piece of property The initial imestment required for each opportunity, along with the expectod

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Acomherciai foal estate developer is considering several opbions for devaloping a piece of property The initial imestment required for each opportunity, along with the expectod cash flow at the end of the first year, the growh rate of the concem, and the cost of capital associated with each projoct is shown bolow: It is assumed each investment wil coerato in porpotuity after the initial irvestment. Question 1: Which investmont opportunity should the investor choose: A. Collee Shop B. Clothing Store C. Corwenionce Store D. Bike Shop Question 2: The commercia real estale developer just roceivod an offer from someone interested in purchasing tho undevelopod property The ofler to purchatse thio property was for $180,000. Does this alter the docision made in question \#1 above? A. No, My decision from Question 141 is still the most atractive option B. Yes. The choice made in Question it1 is no fonger the most attractivo ontion

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