Question: a. compute the risk-adjusted net present value for Windy Acres and Hillcrest Apartments. Windy Acres. Net Present Value. $ ? Hillcrest Apartments. Net Present Value

a. compute the risk-adjusted net present value for Windy Acres and

a. compute the risk-adjusted net present value for Windy Acres and Hillcrest Apartments.

Windy Acres. Net Present Value. $ ?

Hillcrest Apartments. Net Present Value $ ?

Mr. Backster is likely to hold the apartment complex of his choice for about 25 years and will use this period for decision-making purposes. Either apartment can be purchased for $160,000. Mr. Backster uses a risk-adjusted discount rate approach when evaluating investments. His scale is related to the coefficient of variation (for other types of investments, he also considers other measures). 0. Compute the risk-adjusted net present value for Windy Acres and Hillcrest Apartments. (Round "PV Factor" to 3 decimal places, Do not round intermediate calculations. Round the final answers to nearest whole dollar.) b-1. Which investment should Mr. Backster accept if the two investments are mutually exclusive? Hillcrest Windy Acres Both None b-2. Which investment should Mr. Backster accept if the investments are not mutually exclusive and no capital rationing is involved? Windy Acres Hillicrest Apartments Both None

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