Grady Enterprises is looking at two project opportunity for a parcel of land that the company currently owns. The first project is a restaurant, and the second project is a sports facility. The restaurant's projected cash flow is an initial cost of $1,500,000 with cash over the next six years of $200,000 (Year One), $250,000 (Year two), $300,000 (Year three through five), and $1,750,000 (Year six), at which point Grady plans to sell the restaurant. The sports facility has the following cash outflow: Initial cost of $2,400,000 with cash flow over the next four years of $400,000 (Year one to three) and $3,000,000 (year four) at which point Grady plans to sell the facility. If the appropriate discount rate for the restaurant is 11% and the appropriate discount rate for the sports facility is 13%. Using NPV to determine which project Grady should choose for the parcel of land.

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