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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

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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: Mr. Backster is likely to hold the apartment complex of his choice for about 25 years and will use this period for decision-making purposes. Either apartment can be purchased for $160,000. 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). 0. Compute the risk-adjusted net present value for Windy Acres and Hillicrest Apartments, (Round "PV Foctor" to 3 decimal places, Do not round intermediote calculations. Round the final answers to nearest whole dollar.) 0. Compute the risk-adjusted net present value for Windy Acres and Hillcrest Apartments. (Round "PV Factor" to 3 decimal ploces not round intermediate calculations. Round the final answers to nearest whole dollar.) b-1. Which Investment should Mr. Backster accept if the two investments are mutually exclusive? Hilicrest 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 Hilicrest Aportments Both None

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