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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

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:

Business NameSquare Feet RequiredExpected Monthly Cash Flow
Videos Now500070000
Gords Gym3500052500
Pizza Warehouse2500052500
Super Clips1500025500
30 1/2 Flavors1500028500
s-Mart12000180000
WalVerde Drugs6000147000
Multigular Wireless100022250


If your new strip mall will have 15, 000 square feet or retail space available to be lease, to which business should you lease and why?  

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