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You own building Y and building H. The next cash flow for each building is expected in 1 year. Building Y has a cost of
You own building Y and building H. The next cash flow for each building is expected in 1 year. Building Y has a cost of capital of 2.00 percent and is expected to produce annual cash flows of $201,369.00 forever. Building H is worth $1,468,052.00 and is expected to produce annual cash flows of $517,100.00 forever. Which assertion is true? Building H is more valuable than building Y and building Y is more risky than building H Building Y is more valuable than building H and building H is more risky than building Y Building H is more valuable than building Y and building H is more risky than building Y Building Y is more valuable than building H and building Y is more risky than building H Building Y and building H either have the same value, the same level of risk, or both the same value and level of risk. You own building Y and building H. The next cash flow for each building is expected in 1 year. Building Y has a cost of capital of 2.00 percent and is expected to produce annual cash flows of $201,369.00 forever. Building H is worth $1,468,052.00 and is expected to produce annual cash flows of $517,100.00 forever. Which assertion is true? Building H is more valuable than building Y and building Y is more risky than building H Building Y is more valuable than building H and building H is more risky than building Y Building H is more valuable than building Y and building H is more risky than building Y Building Y is more valuable than building H and building Y is more risky than building H Building Y and building H either have the same value, the same level of risk, or both the same value and level of risk
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