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An investor has the opportunity to invest in four new retail 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 retail stores. The amount that can be invested in each store, along with the expected cash flow at the end of the first year, one growin rate of the concern, and the cost of capital is shown for eoch case. It is astumed each investment wit operate in perpetuify afer the initial investment Which imvestrnent should the investior choose? A. Inital irvestment $100,000; Cish fiow in year 1:$12,000; Groweh Rate: 125%; Cost of Capital: 9.3% B. Initial investment: $90,000; Cash flow in year 1:510,000; Growth Fate: 1.50%; Cost of Caphtal 9.1%

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