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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, the growth rate of the concern, and the cost of capital is shown for each case. It is assumed each investment will operate in perpetuity after the initial investment. Which investment should the investor choose? Select one a. Initial investment $80,000; Cash flow in year 1: $8,000, Growth Rate: 1.75%; Cost of Capital: 8.0% b. Initial investment: $60,000; Cash flow in year 1: $6,000, Growth Rate: 250%; Cost of Capital: 7.2% c Initial investment: $100,000, Cash flow in year 1: $12,000; Growth Rate: 125%; Cost of Capital: 9.1% d. Initial investment: $90,000; Cash flow in year 1: $10,000; Growth Rate: 1.50%; Cost of Capital 9.3% Which of the following statement is correct about publicly traded companies? Select one a. Publicly traded companies must follow the rules and format set out in the Generally Accepted Accounting Principles (GAAP) when creating financial statements b. Statement of sources and uses of cash is one of the financial statements that all publicly traded companies have to file with the SEC Publicly traded companies produce financial statements to increase intrinsic value of their firms. d. Publicly traded companies can choose whether or not they wish to release periodic financial statements

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