QUESTION $7$

You own building $x$ and building $O.$ The next cash flow for each building is expected in $1$ year. Building $x$ has a cost of capital of $15\mathrm{.}10$ percent and is expected to produce annual cash flows of $$159,333\mathrm{.}00$ forever. Building $O$ is worth $$2,460,604\mathrm{.}00$ and is expected to produce annual cash flows of $$142,045\mathrm{.}00$ forever. Which assertion is true? Building $x$ is more valuable than building $O$ and building $O$ is more risky than building $x$

Building $O$ is more valuable than building $x$ and building $O$ is more risky than building $x$

Building $x$ is more valuable than building $O$ and building $x$ is more risky than building $O$

Building $O$ is more valuable than building $x$ and building $x$ is more risky than building $O$

Building $x$ and building $O$ either have the same value, the same level of risk, or both the same value and level of risk.