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please pleas i nees this asap Question 1 North Carolina Auto Parts is planning to sell its Quiapo, Burlington, and Apex stores. The firm expects
please pleas i nees this asap
Question 1
North Carolina Auto Parts is planning to sell its Quiapo, Burlington, and Apex stores. The firm expects to sell each of the three stores for the same, positive cash flow of $D. The firm expects to sell its Quiapo store in X years, its Burlington store in X years,
and its Apex store in N years. The cost of capital for the Quiapo and Burlington stores is I percent and the cost of capital for the Apex store is J percent. We know that X 0 and I O. The cash flows from the sales are the only cash flows associated
with the various stores. Based on the information in the preceding paragraph, which one of the following assertions is true?
O Two of the three stores have equal value and those two stores are more valuable than the third store or all three stores have the same value
O The Burlington store is the most valuable of the 3 stores
O The Apex store is the most valuable of the 3 stores
O The Quiapo store is the most valuable of the 3 stores
O Cannot be determined based on the information given
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