Question: Moving to another question will save this response. uestion 12 George is interested in buying one of the two local businesses on sale: a Coffee

 Moving to another question will save this response. uestion 12 George

Moving to another question will save this response. uestion 12 George is interested in buying one of the two local businesses on sale: a Coffee Shop or a Shoe Store The initial investment for Coffee Shop is $125,000 and $135,000 for Shoe Store Cash flow in the first year Coffee Shop is $7,600 and $9,000 for Shoe Store Assume that both businesses can be operated forever Cash flows grow at 5.00% for Coffee Shop and 3.00% for Shoe Store George can borrow from a bank at a rate of 8.00% to buy Coffee Shop and 7.00% to buy Shoe Store If George buys the Coffee Shop instead of the Shoe Store, How much extra NPV will he get? Enter your answer in the following format: + or -12,345. Hint1: Answer is between 34,883 and 41,783 Hint2: Compute NPV(Coffee Shop) - NPV (Shoe Store). Moving to another question will

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