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You own building V and building S. The next cash flow for each building is expected in 1 year. Building V has a cost of
You own building V and building S. The next cash flow for each building is expected in 1 year. Building V has a cost of capital of 19.30 percent and is expected to produce annual cash flows of $226,941.00 forever. Building S is worth $6,397,920.00 and is expected to produce annual cash flows of $567,281.00 forever. Which assertion is true? O Building V is more valuable than building S and building V is more risky than building S O Building S is more valuable than building V and building V is more risky than building S O Building V is more valuable than building S and building S is more risky than building V Building S is more valuable than building V and building S is more risky than building V Building V and building S either have the same value, the same level of risk, or both the same value and level of risk
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