Use the Information for the Question(s)below

question 30

Essay

Use the information for the question(s)below.
Your firm is preparing to open a new retail strip mall and you have multiple businesses that would like to lease space in it.Each business will pay a fixed amount of rent each month plus a percentage of the gross sales generated each month.The cash flows from each of the businesses have approximately the same amount of risk.The business names,square footage requirements,and monthly expected cash flows for each of the businesses that would like to lease space in your strip mall are provided below:
-If your new strip mall will have 16,000 square feet of retail space available to be leased,to which businesses should you lease and why?

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Definitions:

Audition

is the formal term for the sense of hearing, or the process by which sound waves are interpreted by the brain.

Papillae

Structures on the tongue that contain groupings of taste buds.

Gustatory Receptors

Specialized sensory cells located on the tongue that detect taste stimuli and convey taste signals to the brain.

Olfactory Epithelium

A thin layer of tissue, deep within the nasal cavity, containing the olfactory receptors; these sensory receptors produce information that is processed in the brain as smell.