A company owns a commercial property near a UBC and received an offer to buy it for $400,000 The manager of the company is considering using the property for two possible alternatives, a coffee shop or an apparel store The manager assumes that these business will operate indefinitely. You have collected the following information about the alternative uses for the property: Coffee Shop: Initial Cost: $400,000, Cash Flow in Year 1: $80,000 Cash flows grow forever at a constant rate of 3.5%. Discount Rate: 12% Apparel Store: Initial Cost: $500,000, Cash Flow in Year 1: $95,000 Cash flows grow forever at a constant rate of 3%. Discount Rate: 14% What should you do? Calculate the NPV, the IRR, the Payback Period and the Profitability Index . Use each the criteria for each measure, and decide which project should the company adopt