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An investor has the oppottunty to irvest 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 oppottunty to irvest 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 concem, and the cost of capilal is shown tor each case. If is assumed each investment will operate in perpetuity after the initial irvestmont. Which irvestment should the irvestar choose? A. Intial investment: $100,000; Cash flow in year 1: $12,000; Growh Rate: 125\%; Cost of Capital: 9,4% B. Initia investment, $90,000; Cash flow in yoar 1: $10,000; Growth Rate: 1.50\%; Cost of Capital: 9% C. Intial inwestment $80,000; Cash flow in year 1: $8000; Growih Fale; 1.75\%; Cost of Capital: 8.5\% D. Innial investruent. $60,000, Cash fow in year 1: $6000, Growth Rale: 2.50\%, Cost of Capital: 7 .5\%

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