You have a parcel of land and have plans being considered to use the property indefinitely.

The business ideas being considered are listed below.

Business Option	Cost of Capital	Expected Growth Rate	Cash Flow in Year 1	Capital Investment
Restaurant	10.50%	4.50%	$37,000	$425,000
Gaming Lounge	8.75%	3.75%	$28,000	$395,000
Hair Salon	11.00%	6.00%	$32,500	$450,000

You also have on the table the option to sell the property for $225,000, but you will be required to have the cover transfer costs which are at a 15% of the property value.

Required: Evaluate the options and indicate the preferred option based on the analysis. [10 marks]