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Goma Waste Disposal is planning to sell its Columbus, Memphis, and Detroit facilities. The firm expects to sell each of the three faculties for the

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Goma Waste Disposal is planning to sell its Columbus, Memphis, and Detroit facilities. The firm expects to sell each of the three faculties for the same, positive cash flow of W dollars The firm expects to sell its Memphis facility in Z years, its Detroit facility in Z years, and its Columbus facility in T years The cost of capital for the Memphis facility is Q percent, the cost of capital for the Columbus facility is Q percent, and the cost of capital for the Detroit facility is P percent We know that T > Z > 0 and Q > P > 0. The cash flows from the sales are the only cash flows associated the various facilities. Based on the information in the preceding paragraph, which one of the following assertions is true? Two of the three facilities have equal value and those two facilities are more valuable than the third facility or all three facilities have the same value The Detroit facility is the most valuable of the 3 facilities The Columbus facility is the most valuable of the 3 facilities The Memphis facility is the most valuable of the 3 facilities None of the other assertions is true

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