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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 al the end of the first year, the growth rate of the concem, and the cost of capial is shown for each case, It is assumed each investment will operate in perpetuity after the initial investment. Which investment should the investor choose? A. Intial investment $100,000; Cash flow in year 1. $12,000; Growth Rato: 1.25\%; Cost of Capilal 9.1% B. Initial investment: $90,000, Cash flow in year 1:$10,000; Growth Rate: 1.50\%, Cost of Capital 9.1% C. Initial investment $80.000, Cash flow in year 1.$8000; Growth Rate: 1.75%, Cost of Capilal: 8.1% D. Initial investment $60,000; Cash flow in year 1: $6000; Growth Rate: 2.50%; Cost of Capial: 7.1\%

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