Isabella Is Considering Three Mutually Exclusive Options for the Additional

question 96

Multiple Choice

Isabella is considering three mutually exclusive options for the additional space she just added to her specialty women's store.The cost of the expansion was $127,000.She can use this additional space to add a fabric and quilting section,add an exclusive gifts department,or expand into imported decorator items for the home.She estimates the present value of these options at $114,000 for fabric and quilting,$163,000 for exclusive gifts,and $138,000 for decorator items.Which option(s) ,if any,should Isabella accept?

• A)None of these options
• B)Fabric and quilting only
• C)Exclusive gifts only
• D)Exclusive gifts and decorator items only
• E)All three options