Alexa's Craft Stores of Armstrong is a retail outlet of art and craft supplies and provides classes related to the products it sells. Alexa's is considering expanding by purchasing a chain of ten children's clothing stores located in the Okanagan area. Jen's Small World currently operates children's clothing stores in Newfoundland and is currently considering expanding into the Okanagan area and opening several stores there. Alexa's currently has a cost of capital of 13.5 % and Jen's cost of capital is currently 12 %. Both expansion projects have a positive net present value at 12 % and a negative net present value at 13.5 %. Which firm or firms should expand into the Okanagan area?

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The Answer of Alexa's Craft Stores of Armstrong is a retail outlet of art and craft supplies and provides classes related to the products it sells. Alexa's is considering expanding by purchasing a chain of ten children's clothing stores located in the Okanagan area. Jen's Small World currently operates children's clothing stores in Newfoundland and is currently considering expanding into the Okanagan area and opening several stores there. Alexa's currently has a cost of capital of 13.5 % and Jen's cost of capital is currently 12 %. Both expansion projects have a positive net present value at 12 % and a negative net present value at 13.5 %. Which firm or firms should expand into the Okanagan area?

Alexa's Craft Stores of Armstrong Is a Retail Outlet of Art