a. A multinational must choose among three alternative cities to invest in, given a cost of capital of 13% The following table provides the initial investment costs and projected cash flows generated from investing in each city. The company wishes to use a CAPM-type risk-adjusted discount rate (RADR) in its analysis. It is believed that the appropriate market rate of return is 12%, and the current risk-free rate of return is 7%. Port of Spain has an RADR factor of 1.2, Salem has an RADR factor of 1.4 and Riverdale has an RADR factor of 1.6. [Hint: The RADR factors are similar to betas.] i. Calculate the rate of return for each alternative location. 4 marks ii. Calculate the net present value (NPV) of each alternative and rank the alternatives on the basis of NPV. 4 marks iii. Calculate the annualized net present value (ANPV) of each alternative and rank them accordingly. 4 marks iv. Why is ANPV preferred over NPV when ranking projects with unequal lives? 1 mark