4. You are a project manager at a historic Shoppe, a rapidly growing bookstore selling hard to find books and periodicals. Currently your company is planning on opening additional stores throughout the United States. Your primary market includes densely populated, major metropolitan cities.
Your company is deciding among New York, Los Angeles, and Seattle. Based on data which project should be recommended using the discounted cash flow technique?
Project New York makes $100,000 in 2 years
Project Los Angeles makes $110,000 in 3 years
Project Seattle makes $120,000 in 4 years
Assume that the cost of capital is 8%