What is the total npv created

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A mall operator has the opportunity to lease an additional? 20,000 square feet of space for the next five years. It can divide up this space between the following potential new tenants. Each tenant will require a different amount of?space, and each opportunity represents a different level of? NPV, as indicated. The discount rate is? 10% for all options. The mall?operator's objective is to maximize NPV.

Store

NPV

Space Required? (Sq. Feet)

Pet Store

?$600,000

?6,000

Fabric Store

?$1,000,000

?7,000

Book Store

?$320,000

?4,000

Luggage Store

?$600,000

?5,000

Hardware Store

?$900,000

?6,00

Watch Store

?$310,000

?2,000

Shoe Repair Store

?$30,000

?1,000

Question? A:? Assuming the amount of additional space available for lease is limited to? 20,000 square? feet, which of the above projects should the mall operator accept? FIRST? In other?words, which of the above projects is MOST? attractive?

Question? B:? What is the TOTAL NPV created if the mall operator chooses the optimal combination of stores for its? expansion?

Reference no: EM133073086

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