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You are the manager of a small department store in a mall that has the opportunity to rent an additional 20,000 square feet of space
You are the manager of a small department store in a mall that has the opportunity to rent an additional 20,000 square feet of space for five years. You can divide up this space between the below new departments. Each department will require a different amount of space, and each department is expected to make a yearly profit for each of the next five years. The discount rate is 10%. Based on this information, what departments should be added? Fabrics, Hardware, and Shoe Repair Fabrics, Luggage, Hardware, Watches, and Shoe Repair Pets, Fabrics, Books, and Luggage Pet, Fabrics, Luggage, Hardware, and Shoe Repair Pet, Luggage, Hardware, and Shoe Repair Your firm has gathered projected cash flows for two projects. At what discount rate will you be indifferent between the two projects? Express your response in percent but without the percent sign. Please round your answer to two decimal points
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