Question
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
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 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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Foundations Of Financial Management
Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley R. Danielsen
13th Edition
0073382388, 978-0073382388
