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Your firm is preparing to open a new retail strip mall and you have multiple businesses that would like lease space in it. Each business
Your firm is preparing to open a new retail strip mall and you have multiple businesses that would like lease space in it. Each business will pay a fixed amount of rent each month plus a percentage of the gross sales generated each month. The NPVs from each of the businesses has approximately the same amount of risk. The business names, square footage requirements, and monthly expected NPVs for each of the businesses that would like to lease space in your strip mall are provided below: Business Name Square Feet Required Expected Monthly NPV 4,000 7,000 B 3,500 5,000 2,500 4,000 m 0 0 1,500 2,000 2,000 3,000 If your new strip mall will have 10,000 square feet of retail space available to be leased, what is the maximum monthly NPVs to be generated? Select one: O A. 11500 O B. 7000 O C. 9500 O D. 10000 O E. 6000 Your firm is preparing to open a new retail strip mall and you have multiple businesses that would like lease space in it. Each business will pay a fixed amount of rent each month plus a percentage of the gross sales generated each month. The NPVs from each of the businesses has approximately the same amount of risk. The business names, square footage requirements, and monthly expected NPVs for each of the businesses that would like to lease space in your strip mall are provided below: Business Name Square Feet Required Expected Monthly NPV 4,000 7,000 B 3,500 5,000 2,500 4,000 m 0 0 1,500 2,000 2,000 3,000 If your new strip mall will have 10,000 square feet of retail space available to be leased, what is the maximum monthly NPVs to be generated? Select one: O A. 11500 O B. 7000 O C. 9500 O D. 10000 O E. 6000
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