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

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
Percent and Jen's cost of capital is currently 12 percent. Both expansion projects have a positive net
Present value at 12 percent and a negative net present value at 13.5 percent. Which firm or firms
Should expand into the Okanagan area?

A) Alexa's only.
B) Jen's only.
C) Both Alexa's and Jen's.
D) Neither Alexa's nor Jen's.
E) Cannot be determined from the information provided.