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An investor has the opportunity to invest in four new retall stores. The amount that can be invested in each store, along with the expected

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An investor has the opportunity to invest in four new retall stores. The amount that can be invested in each store, along with the expected cash fiow at the end of the first year, the growth rate of the conoern, and the cost of capital is shown for each case. It is assumed each investment will cporate in perpetuity after the indial investment. Which investrment should the investor choose? A. Initial investment: $100,000; Cash fow in year 1: $12,000; Growth Rate: 125%; Cost of Capital: 93% B. Initial investment: $90,000, Cash flow in year 1: $10,000, Growh Rate: 1.50%, Cost of Capital: 92% C. Intal investment 580,000 , Cash flow in year 1:58000; Growh Rale: 1.75\%; Cost of Capital: 896 D. Intial investment: $60,000, Cash flow in your 1.$6000; Growth Rave 2.50%; Cost of Capital 7%

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