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East Coast Athletics is planning to sell its Wilmington, Philadelphia, and Boston gyms. The firm expects to sell its Wilmington gym for a cash flow
East Coast Athletics is planning to sell its Wilmington, Philadelphia, and Boston gyms. The firm expects to sell its Wilmington gym for a cash flow of SA Its Philadelphia gym for a cash flow of $A and its Boston gym for a cash flow of $B The firm expects to sell its Wilmington gym in T years, its Philadelphia gym in years, and its Boston gym in S years. The cost of capital for all three gyms is Y B A T and Y The cash flows from the sales are the only cash flows associated with the various gyms. Based on the information in the preceding paragraph, which one of the following assertions is true? The Philadelphia gym is the most valuable of the gyms None of the above assertions is true Two of the three gyms have equal value and those two gyms are more valuable than the third gyms or all three gyms have the same value Tha BostoN gym is the most valuabE of the gyma. ThecWilmington gym is most valuable of the three gyms
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