8. The table below shows the projected cash flows (including reversion) for Property A and Property B. If both properties sell at fair market value for a cap rate (initial and terminal cash yields) of 8%, then which statement below correctly describes the relative investment risk in the two properties? Annual net cash flow projections for two properties ($ millions) Year 1 2 3 4 5 6 7 8 9 101 | $1.0000 $1.0300 $1.0609 $1.0927 $1.1255 $1.1593 $1.1941 $1.2299 $1.2668 $18.10 B $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $13.50 (a) Property A is more risky. (b) Property B is more risky. (c) Both properties are equally risky. (d) Cannot be determined based on the information given. 8. The table below shows the projected cash flows (including reversion) for Property A and Property B. If both properties sell at fair market value for a cap rate (initial and terminal cash yields) of 8%, then which statement below correctly describes the relative investment risk in the two properties? Annual net cash flow projections for two properties ($ millions) Year 1 2 3 4 5 6 7 8 9 101 | $1.0000 $1.0300 $1.0609 $1.0927 $1.1255 $1.1593 $1.1941 $1.2299 $1.2668 $18.10 B $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $13.50 (a) Property A is more risky. (b) Property B is more risky. (c) Both properties are equally risky. (d) Cannot be determined based on the information given