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An Investor has the opportunity to invest in our new retail stores. The amount at can be invested in each so, along with the expected
An Investor has the opportunity to invest in our new retail stores. The amount at can be invested in each so, along with the expected can tow at the end of the first year, the growth rate of the concem, and the cost of capital a shown for each come. is assumed each moment wit operate in perpetulty afer the wel investment. Which investment should the investor choose? O A Initial investment $100,000, Cash flow in year :$12.000 Growth Rate: 125%. Coat of Capital: 0.3% On Intial investment 500,000 Cashow in year: 510,000 Grow Rate 1.50% Cost of Capital 0.3% OG Initial investment 500,000: Cash flow in year: 50000, Growth Rate: 1756. Con of Capital OD. Inntal investment 360,000 Chow in year 180000Growth Role 2.50% Com o CN
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