QUESTION 4 You own a small piece of commercial land near a university. You are considering what to do with it. You have been approached recently with an offer to buy it for $600,000. You are also considering three alternative uses of the land for yourself: a laundromat, a bakery, and a bike shop. You assume that you would operate your choice indefinitely, eventually leaving the business to your children. Which is the best business? Blank Growth Initial Investment Cash flow in the First Year Cost of capital rate Laundromat $200,000 $35,000 2.0% 7.0% Bakery $750,000 $45,000 3.5% 6.5% Bike Shop $800,000 $40,000 4.5% 7.0%