Question: ABC Outlet Store is looking for a new location near a shopping mall. It is considering purchasing a building rather than leasing, as it has

ABC Outlet Store is looking for a new location near a shopping mall. It is considering purchasing a building rather than leasing, as it has done in the past. Three retail buildings near a new mall are available but each has its own advantages and disadvantages. The owner of the company has completed an analysis of each location that includes considerations for the time value of money. The information is as follows

The owner does not understand how the location with the highest percentage return has the lowest net present value.

Required
Explain to the owner what is (are) the probable cause(s) of the comparable differences (10points

Location A Location B| Location C 13% 20% 20,000 Internal rate of return 17% Net present value S25,000$40,000

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