Erin Mills Holdings (EMH) is evaluating six small real estate investments. Management plans to buy the properties today and sell them five years from today. The following table summarizes the initial cost and the expected sales price for each property, as well as the appropriate discount rate based on the risk of each venture. Assume the projects are independent. EMH has a total capital budget of $750,000 to invest. Project Cost Today Discount Rate Expected Sales Price in Year 5 Streetsville $200,000 12% $550,000 Cooksville $300,000 9% $625,000 Lorne Park $215,000 12% $430,000 Port Credit $432,000 9% $750,000 Malton $310,000 12% $700,000 Clarkson $250,000 9% $575,000 C. a. What is the IRR of each investment? b. What is the NPV of each investment? Which properties should EMH choose? Rank the projects by IRR and the Profitability Index (PI). Do they provide the same results? For the PI use the PV of Cash Inflows. d. If EMH requires to use a cost of capital of 18% instead of the provided discount rates, which properties should EMH choose? Now assume the projects are mutually exclusive. Which project should EMH accept based on the PL rule? Is this the best that EMH can do? Explain why or why not. f. Now assume the following are contingent projects (i.e. projects that must be taken together): (i) Clarkson and Lorne Park; (ii) Streetsville and Port Credit; and (iii) Cooksville and Malton. Which projects should EMH accept? e