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 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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