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AKE SURE YOU ADDRESS THE ENTIRE QUESTION A commercial real estate developer is considering several options for developing a piece of property The initial investment

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AKE SURE YOU ADDRESS THE ENTIRE QUESTION A commercial real estate developer is considering several options for developing a piece of property The initial investment required for each opportunity, along with the expected cash flow at the end of the first year, the growth rate of the concem, and the cost of capital associated with each project is shown below PROJECT Initial Investment CE at end of Year 1 Growth in CF Cost of Capital Coffee Shop $720.000 $82,000 2.0% 120% Clothing Store $540,000 $64.900 3.0% 14.09 Convenience Store $1.200.000 $98,700 11.0% Bike Shop $1,020,000 $97.500 50% 130% It is assumed each investment wit operate in perpetuity after the initial investment 40% Question 11 Which investment opportunity should the investor choose O A Coffee Shop B. Clothing Store C. Convenience Store D. Bike Shop Question : The commercial realestaria developer loved an offer from someone interested in purchasing the undeveloped property Theor to purchase the prey was for $180.000 Does this art deco en made above OA No Mydison from Question is the most region OS Y The cho made in Question is no longer the most active option

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