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Solve the problem A small commercial property is for sale near your home. You believe a like business would be successful. After thorough research, you
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A small commercial property is for sale near your home. You believe a like business would be successful. After thorough research, you come up with the following estimates. Which investment should you choose?
project | initial Investment | First year cash flow | Growth rate | Cost of capital |
book store | 300000$ | 63000 | 3.0% | 8% |
coffee shop | 400000$ | 80000 | 3.0% | 8% |
ethnic cafe | 400000$ | 104000 | 0.0% | 8% |
electronic store | 400000$ | 100000 | 3.0% | 11% |
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