You own building B and building J. The next cadh flow for each building is expected in 1 year. Building B has a cost of capital 14.30% and is expected to produce annual cash flows of $534567 forever. Building J is worth $5797042 and is expected to produce annual cash flows of $150818 forever. Which assertion is true?
- Building B is more valuable than building J and Building J is more risky than than building B
- Building J is more valuable than building B and Building J is more risky than than building B
- Building J is more valuable than building B and Building B is more risky than than building J
- Building B is more valuable than building J and Building B is more risky than than building J
- Both buildings are the same value and level of risk