Acres 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 Actes and Hillcrest Apartments. The anticipated annual cash inflows from each are as follows: Windy Hillcrest Apartments Yearly Aftertax Yearly Aftertax Cash Inflow Probability Cash Inflow Probability 90,000 0.2 95,000 95,000 100,000 110, eee 0.2 110,000 125,000 0.2 120,000 0.1 130,000 0.2 0.2 0.2 0.3 0.4 Mt. Backster is likely to hold the apartment complex of his choice for about 30 years and will use this period for decision-making purposes. Either apartment can be purchased for $206,000. 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) Coefficient of Discount Rate 0-0.35 (cost of capital) 0.40-8.50 not considered Variation 0:35-0.40 5% 8 12 Over 0.50 6. Compute the risk adjusted net present value for Windy Acies and Hillcrest Apartments. (Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answers to nearest whole dollar) Met present waluw Windy Acres 3 a. Compute the risk adjusted net present value for Windy Acres and Hillcrest Apartments (Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answers to nearest whole dollar.) 10 et present value Windy Acres Hillcrest Apartments 000 b-1. Which investment should Mt Backster accept of the two investments are mutually exclusive? erences Hillcrest Windy Acres Both None b-2. Which investment should Me Backster accept the investments are not mutually exclusive and no capital rationing is involved? Windy Acres O Hillcrest Apartments Both None Act