Calculate the Payback Period, Net Present Value (NPV), Internal Rate of Return (IRR) and profitability index of each location. Based on the four capital budgeting tools, create a table, and based on your findings, recommend where ABC build its new warehouse. The locations are mutually exclusive, which means ABC can choose only one location.

Please note that each location has a different cost of capital to allow for the different risks associated with each location. All the numbers are in thousands of dollars.

Cranbrook, BC

Year: 0 1 2 3 4 5

Cash flow: - $5,000 $2,000 $2,000 $2,000 $2,000 $2,000

Cost of Capital: 6%

Okotoks, AB -

Year: 0 1 2 3 4 5

Cash flow: - $6,000 $2,500 $2,500 $2,500 $2,500 $2,500

Cost of Capital: 7%

Payback Period:

Net Present Value (NPV):

Internal Rate of Return (IRR):

Profitability Index (PI):