HCM Hotels Corporation Suppose you have recently been appointed as the financial analyst to work for the HCM Hotel Corporation, an international hotel corporation which owns and operate renowned hotel brands all over the world. Your direct supervisor, the regional financial director (RFD) for the Asian-Pacific region has just handed you the timatdzcash:y nowsfortwo:proposediiwegtment+rojectsregarding budget hotels. Project M involves in a developing area; it would take some time to build up the clientele for this hotel, and so the mect P involves renovatingofamoldhotelbuildingiman economically saturated market, and its Both projects have 3-year project lives, because HCM Hotels Corporation is planning to give up the budget hotel segment and enter the upmarket hotel segment after 3 years. Here are the two hotel projects' net cash flows expected in the next 3 years:- Expected Net Cash Flow Year 2 (Sloo 000) SID ooo S60 000 $80 ooo (SIOOOOO) S70 ooo $50 ooo $20 000 Depreciation. trade-in values, net working capital requirements, and tax effects are all included in these cash flows. The regional financial director also made subjective risk assessments of each hotel project, and he concluded that both projects have risk characteristics which are similar to the company's average project. UCMH0telsCorporationVweighted averageeost Of. capitaLis.lOpercent,As the company's financial analyst, you are now instructed by the regional financial director to invotmentprojectsshould' be