Conx Chux Chsx PC the e Aco x Acox PX + tion.com/ext/map/index.html?con consternal browser Blaunch Url http%253A%252F%252Fmes meducation.com/252Fmghmiddieware252Fmeproducts%252 @ Barkin Robbins to E Bank Robbins Fra. Hing Center Submit your applic My SmartRecruiter lob posting Part The folution of Of ework (modified) Saved Help Save & Exit Sub Check my work Problem 13-21 (modified) Mr. John Backster, a retired executive, desires to invest a portion of his assets in rental property. He has narrowed his choices to two apartment complexes, Windy Acres and Hillcrest Apartments. The anticipated annual cash inflows from each are as follows: Windy Hillcrest Acres Apartments Yearly Aftertax Yearly Aftertax Cash Inflow Probability Cash Inflow Probability se, eee 55,000 8.2 55,000 8.2 68, Bee 2.3 70,000 8.4 70,000 85,000 e.2 80,000 2.1 90,888 8.1 2.1 Mr. Backster is likely to hold the apartment complex of his choice for about 15 years and will use this period for decision-making purposes. Either apartment can be purchased for $150,000. 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) Prev 55 Measures Help Save & Exit SU Chee Coefficient of Variation 0-0.35 0.35-0.40 0.40-0.50 Over 0.5e Discount Rate 4% 8 12 not considered (cost of capital) a. Compute the risk-adjusted net present value for Windy Acres and Hillcrest Apartments. (Do not round intermediate calculations. Round the final answers to nearest whole dollar) (If you're using the TVM funtions of a calculator to answer the question, then you can ignore this note. If you're using the PV tables at the back of the book to answer this question, round "PV Factor" to 3 decimal places.) Windy Acres Hillcrest Apartments Net present value $ $ b-1. Which investment should Mr. Backster accept if the two investments are mutually exclusive? Conx Chux Chsx PC the e Aco x Acox PX + tion.com/ext/map/index.html?con consternal browser Blaunch Url http%253A%252F%252Fmes meducation.com/252Fmghmiddieware252Fmeproducts%252 @ Barkin Robbins to E Bank Robbins Fra. Hing Center Submit your applic My SmartRecruiter lob posting Part The folution of Of ework (modified) Saved Help Save & Exit Sub Check my work Problem 13-21 (modified) Mr. John Backster, a retired executive, desires to invest a portion of his assets in rental property. He has narrowed his choices to two apartment complexes, Windy Acres and Hillcrest Apartments. The anticipated annual cash inflows from each are as follows: Windy Hillcrest Acres Apartments Yearly Aftertax Yearly Aftertax Cash Inflow Probability Cash Inflow Probability se, eee 55,000 8.2 55,000 8.2 68, Bee 2.3 70,000 8.4 70,000 85,000 e.2 80,000 2.1 90,888 8.1 2.1 Mr. Backster is likely to hold the apartment complex of his choice for about 15 years and will use this period for decision-making purposes. Either apartment can be purchased for $150,000. 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) Prev 55 Measures Help Save & Exit SU Chee Coefficient of Variation 0-0.35 0.35-0.40 0.40-0.50 Over 0.5e Discount Rate 4% 8 12 not considered (cost of capital) a. Compute the risk-adjusted net present value for Windy Acres and Hillcrest Apartments. (Do not round intermediate calculations. Round the final answers to nearest whole dollar) (If you're using the TVM funtions of a calculator to answer the question, then you can ignore this note. If you're using the PV tables at the back of the book to answer this question, round "PV Factor" to 3 decimal places.) Windy Acres Hillcrest Apartments Net present value $ $ b-1. Which investment should Mr. Backster accept if the two investments are mutually exclusive