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You own building Z and building K. The next cash flow for each building is expected in 1 year. Building Z has a cost of

You own building Z and building K. The next cash flow for each building is expected in 1 year. Building Z has a cost of capital of 19.30 percent and is expected to produce annual cash flows of $570,180.00 forever. Building K is worth $6,154,336.00 and is expected to produce annual cash flows of $578,750.00 forever. Which assertion is true?

Building Z is more valuable than building K and building Z is more risky than building K
Building Z is more valuable than building K and building K is more risky than building Z
Building K is more valuable than building Z and building Z is more risky than building K
Building K is more valuable than building Z and building K is more risky than building Z
Building Z and building K either have the same value, the same level of risk, or both the same value and level of risk.

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