Deercreelc Corporation presented following estimates for its Canning Division torthe upcoming year 20)\". Camping Division Year 203:1 Expected lncorne 31.000000 Beginning of the year m m $10.000.000 At the beginning of 20x1. the manager ofthe Camping Division is considering the opportunity to invest in two independent projects. The first protect is called the EverTent. It is a small two-person tent capable of vitl'rstandi'rg the high winds at the top at Mount Everest. White the market for actiuai Everest climbers is small. the manager expects that welltodo weekend campers will buy the tent due to the cachet of the name and its light weight. Demand for the product is emected to be relatively low in com bulwill increase substantially the following year. The second Is a KiddieKamp kit that includes a child-sized sleeping bag and a colorfut pup tent that can be set up easilyI in one's backyard. Demand tor the lddieKarnp is expected to be the stable over the Moyear period. Both potential projects will last crrty two years. Details regarding each protect follow: EvorTent KlddieKemp Initial Investment 8500.000 $400.000 Year 20x1 Expected I :- 335.030 $41,000 Year 20x2 Expected $85,000 $41,000 Income Deercreek's corporate headquarters has made available up to $ 1 million of capital for this division. Any funds not invested by the division will be retained by headquarters and invested to earn the companfs minimum required rate of return. 9 percent. The company uses straight line depreciation with no salvage value. Wrthout the investments, the division expects that Year 20X'l data will remain unchanged. Requirements: 1. Determine which investment(s) (lf any) Deercreek's shareholders would want the division manager to mate. Provide calculations to justify your answer. (Assume the shareholders want to maximize the present value of cash ows.) (10 points possible. Up to 50% partial credit for using a correct approach.) 2. Assuming that the Gaming Division's manager is evaluated based on ROI and that the manager expects to leave the company right after receiving the bonus for 20x1 . which investmentis} (if any) would the manager of the division undertake? Why? Provide calculations to justity your answer. (10 points possible. Up to 50% partial credit tor using a correct approach.) 3. Still assuming that the division manager expects to leave the con-pony right after receiving the 20x1 bonus. if the manager of the division was evaluated with residual income, which investrnenus) (it any) would be undertaken? Why? Provide calculations to justify your answer. (10 points pcesbie. Up to 50% partial credit for using a correct approach.)