missing infoexpected cash flow at the end of the first year, the growth rate of...

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missing infoexpected cash flow at the end of the first year, the growth rate of the concern image
An investor has the opportunity to invest in a new retail store and is deciding among three alteratives. The amount that had to be invested in each strong with the expected show cercom, and the cost of capital is shown for each case. It is assumed that each store will operate in perpetuity, which investment should the investor choosit the short mwy od OA Initial investment $12 million, Cash flow in year 1:150,000; Annual Growth Rate: 2%, Cost of Capital 7% OB. Initial investment: $1.3 milion: Cash flow in year 1: $160,000: Annual Growth Rate: 1%. Cost of Capital 58% OC Initial investment: $1.1 million; Cash flow in year 1: $160,000. Annual Growth Rate: 2%: Cost of Capital: 9.4%

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