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Ohio Electronics Stores is planning to sell its Rolla, Poplar Bluff, and Wentzville stores. The firm expects to sell each of the 3 stores for

  1. Ohio Electronics Stores is planning to sell its Rolla, Poplar Bluff, and Wentzville stores. The firm expects to sell each of the 3 stores for same, positive cash flow of $D. The firm expects to sell its Rolla store in N years, its Poplar Bluff store in N years, and its Wentzville store in Z years. The cost of the capital for the Rolla and Poplar store is L percent and the cost of capital for the Wentzville store is R percent. We know that N>z>0 and L>R>0. The cash flows from the sales are the only flows associated with the various stores. Based on the information in the preceding paragraph, which one of the assertions is true?
    1. The Wentzville store is the most valuable of the 3 stores
    2. Two of the 3 stores have equal value and those 2 stores are more valuable than the 3rd store or all 3 stores have the same value
    3. The Poplar Bluff store is more valuable of the 3 stores
    4. The Rolla store is the most valuable of the 3 stores
    5. Cannot be determined based on the information.

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