THIS QUESTION HAS MULTIPLE PARTS. PLEASE SCROLL DOWN TO MAKE SURE YOU ADDRESS THE ENTIRE QUESTION A commercial real estate developer is considering several options for developing a piece of pn property The initial investment required for each opportunity, along with the expected cash flow at the end of the first year, the growth rate of the concem, and the cost of capital associated with each project is shown below: PROJECT Initial Investment CF at end of Year 1 Growth in CE Cost of Capital Coffee Shop $760,000 $86,000 2.0% 120% Clothing Store $520,000 $62,700 3.0% 14.0% Convenience Store $1,230,000 $96.600 40% 11.0% Bike Shop $970,000 $93.000 13.0% It is assumed cach Investment will operate in perpetuilty after the initial investment Question 1: Which Investment opportunity should the investor choose: 50% O A Coffee Shop OB. Clothing Store O c. Convenience Store OD. Bike Shop o Question 2: The commercial real estate developer just received an offer from someone interested in purchasing the undeveloped property. The offer to purchase the property was for $180,000. Does this alter the decision made in question #1 above? To OA No. My decision from Question #1 is still the most attractive option OB. Yes. The choice made in Question #1 is no longer the most attractive option