Question: The following cash flows represent three different mutually exclusive options related to a property you acquired one year ago for ten million dollars. If other

 The following cash flows represent three different mutually exclusive options related

The following cash flows represent three different mutually exclusive options related to a property you acquired one year ago for ten million dollars. If other opportunities exist for the investment of capital at i* = 20% per year which option would you select? Please use ROR, and verify your conclusions with NPV and PVR analysis. All cash flows are in thousands of escalated dollars. A) Development -10,000 -12,000 0 9,000 1 8,500 2 7,500 3 6,500 4 5,500 5 4,500 6 3,500 7 B) Development -10,000 -22,000 12,000 10,500 -1 0 1 2 9,000 3 7,500 4 6,500 5 6,000 6 6,000 7 6,000 8 C) Sell -10,000 -1 11,000 0

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