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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: 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?
-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?


Definitions:

Receiving

The process of accepting delivery of goods or materials into a facility, checking them for accuracy against the purchase order, and inspecting for damage or defects.

Inspection

The process of examining materials, products, or systems to ensure they meet certain standards, regulations, or customer expectations.

Physical Handling

The process involving the manual or mechanical manipulation and movement of physical goods and materials.

Payment Approval

The process of verifying and authorizing the release of funds to settle a transaction or invoice.

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