Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How do the two sites rank in terms of NPV and the profitability index? Mall restaurant Downtown restaurant NPV Profitablility Index < Required 2 Required 3 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the profitability index for each alternative. (Round your answers to 2 decimal places.) Profitablility Index Mall restaurant Downtown restaurant < Required 1 Required 3 > Problem 16-53 Ranking Investment Proposals; NPV versus Profitability Index; Taxes (Section 2) (LO 16-4, 16-6, 16-7) The owner of Waco Waffle House is considering an expansion of the business. He has identified two alternatives, as follows: Build a new restaurant near the mall. Buy and renovate an old building downtown for the new restaurant. The projected cash flows from these two alternatives are shown below. The owner of the restaurant uses a 16 percent after-tax discount rate. Investment Proposal Mall restaurant Cash Outflow: Net After-Tax Cash Inflows* Time 0 Years 1-10 Years 11-20 $49,000 Downtown restaurant $268,500 131,500 $49,000 31,000 * Includes after-tax cash flows from all sources, including incremental revenue, incremental expenses, and depreciation tax shield. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: 1. Compute the net present value of each alternative restaurant site. 2. Compute the profitability index for each alternative. 3. How do the two sites rank in terms of NPV and the profitability index? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the net present value of each alternative restaurant site. (Round your final answers to the nearest dollar.) Net Present Value Mall restaurant Downtown restaurant