You own building M and building D. The next cash flow for each building is...
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You own building M and building D. The next cash flow for each building is expected in 1 year. Building M has a cost of capital of 10.60 percent and is expected to produce annual cash flows of $299,058.00 forever. Building D is worth $2,212,330.00 and is expected to produce annual cash flows of $250,323.00 forever. Which assertion is true? Building M is more valuable than building D and building M is more risky than building D Building D is more valuable than building M and building D is more risky than building M Building D is more valuable than building M and building M is more risky than building D Building M is more valuable than building D and building D is more risky than building M Building M and building D either have the same value, the same level of risk, or both the same value and level of risk
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