Question: Flo is considering three mutually exclusive options for the additional space she plans to add to her specialty women's store. The cost of the expansion
Flo is considering three mutually exclusive options for the additional space she plans to add to her specialty women's store. The cost of the expansion will be $148,000. She can use this additional space to add childrens clothing, an exclusive gifts department, or a home dcor section. She estimates the present value of the cash inflows from these projects are $121,000 for childrens clothing, $178,000 for exclusive gifts, and $145,000 for decorator items. Which option(s), if any, should she accept?
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