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:

Psychosexual Development

A Freudian concept that describes how personality develops through stages centered on the sexual pleasure of different parts of the body.

Toilet Training

The process of teaching a young child to use the toilet for urination and defecation.

Fixation

An obsessive interest or feeling that may impede the development of more normal interests and social interactions.

Psychic Energy

A concept in psychoanalytic theory referring to the force, derived from instinctual biological drives, that motivates human behavior and mental activities.