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Test Grade Question 37 of 42 possible This question: 1 points) possible Submit test An investor has the opportunity to invest in a new retail

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Test Grade Question 37 of 42 possible This question: 1 points) possible Submit test An investor has the opportunity to invest in a new retail store and is deciding among three alteratives. The amount that needs to be invested in each store, along with the expected cash flow at the end of the first year, the growth rate of the concem, and the cost of is shown for each case. It is assumed that each store will operate in perpetuity. Which investment should the investor choose the alteratives are mutually exclusive? A. Initial invostment $1,3 million: Cash flow in year 1: $160,000; Annual Growth Rate: 1% Cost of Capital: 5.9% B. Initial investment: $1.1 million: Cash flow in year 1: $160,000; Annual Growth Rate: 2%: Cost of Capital: 95% OC. Initial investment: $1.2 million: Cash flow in year 1: $150,000; Annual Growth Rate: 2%: Cost of Capital: 7.4%

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