Mr$.$ John Backster $,$ a retired executive $,$ desires to invest a portion of his assets in rental property $.$ He has narrowed his choices to two apartment complexes $,$ Windy Acres and Hillcrest Apartments $.$ The anticipated annual cash inflows from each are as follows Windy Acres Yearly Aftertax Cash Inflow $110,000115,000130,000145,000150,000$ Probability $0\mathrm{.}2$ Hillcrest Apartments Yearly Aftertax Cash Inflow Probability $0\mathrm{.}2120,0000\mathrm{.}3130,0000\mathrm{.}4140,0000\mathrm{.}11150000\mathrm{.}20\mathrm{.}20\mathrm{.}20\mathrm{.}2$ Mr$.$ Backster is likely to hold the apartment complex of his choice for about $30$ years and will use this period for decision $-$ making purposes $.$ Either apartment can be purchased for $ $110,000.$ Mr$.$ Backster uses a risk $-$ adjusted discount rate approach when evaluating investments $.$ His scale is related to the coefficient of variation $($ for other types of investments $,$ he also considers other measures $)$ Discount Rate Coefficient of Variation $0-0\mathrm{.}350\mathrm{.}35-0\mathrm{.}407\%10($ cost of capital $)140\mathrm{.}40-0\mathrm{.}50$ Over $0\mathrm{.}50$ not consideredCompute the risk $-$ adjusted net present value for Windy Acres and Hillcrest Apartments $.($ Round $"$ PV Factor $"$ to $3$ decimal places $.$ Do not round intermediate calculations $.$ Round the final answers to nearest whole dollar $.)$ Windy Acres Net present value $ Hillcrest Apartments $ b $-1.$ Which investment should Mr$.$ Backster accept if the two investments are mutually exclusive $?$ ences Hillcrest Windy Acres Both None b $-2.$ Which investment should Mr$.$ Backster accept If the investments are not mutually exclusive and no capital rationing is involved $?$ Windy Acres Hillcrest Apartments Both None Activate Wind