Please do it with step by step calculation, it will help understand better

Sean Potter owns and operates a regional chain of motels in the Guelph area and is looking to expand into Fergus. He is currently in discussion with two people about buying each of their motels. After reviewing historical financial records. Sean has come up with the following estimates of cash flows for each of these operations:

Schiafen Gut Motel		Bien Dormir Motel
Yearly after-tax cash inflow	Probabilty %	Yearly after-tax cash inflow	Probabilty %
$100,000	20%	$115,000	20 %
110,000	20%	120000	30%
140,000	20%	140000	40%
170,000	20%	150000	10%
180,000	20%

Mr. Potter is looking at a 20- year time horizon and will use this time period for decision-making purposes. Either motel can be acquired for $1,200,000. Mr. Potter uses a risk-adjusted rate when considering investments. His scale is related to the coefficient of variation.

Coefficient of variation	Discount rate%
0-0.20	8 %
0.21-0.30	12%
0.31-0.40	15 %
Over 0.40	Not considered %

A. Compute the risk-adjustment net present value for each model:

Motel	NPV
Schiafen Gut Motel	?
Bien Dormir Motel	?

B. Which investment should Mr. Johnson accept if the two investments are mutually exclusive? Explain why.

C. Should Mr. Potter accept both investments if there was no capital rationing? Explain.