Your firm is preparing to open a new retail strip mall and you have multiple businesses that would like to 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 cash flows from each of the businesses have approximately the same amount of risk. The business names, square footage requirements, and monthly expected cash flows for each of the businesses that would like to lease space in your strip mall are provided below:

3. If your new strip mall will have 16,000 square feet of retail space available to be leased, to which businesses should you lease and why?

Business Name Videos Now Gords Gym Pizza Warehouse Super Clips 30 1/2 Flavors S-Mart WalVerde Drugs Multigular Wireless Square Feet Expected Monthly Required Cash Flow ($) 4000 70,000 3500 52,500 2500 52,500 1500 25,500 1500 28,500 12,000 180,000 6000 147,000 1000 22,250