P7-33 (similar to) Question Help O Kalmain Properties (P) is evaluating real estate mements Management plans to buy the properties today and will five years from today. The following the initial cost and the expected sale price for each property as well as the appropriate discount rate based on the of each votre Discount Rate Expected sale Project Cost Today Price In Years Mountain Rae $3,000,000 15 $1000000 Ocean Park Estates 15.000.000 15 75.500.000 Law 9.000.000 15 50.000.000 Sebe 6.000.000 35.500.000 Green Hills 3.000.000 8 10,000,000 West Ranch 9.000.000 8 500 000 KP has a total capital budget of $18,000,000 to invest in properties 2. What is the IRR of each investment? Fine IRR of each investment in the table below found to two decimales Discount Rate Expected Sale Project Cost Today Price in Year 5 IRR Mountain Ridge 33.000000 15 $1.000.000 Ocean Park 15.000.000 15 75.500.000 5 Lakeview 9,000,000 15 50.000.000 Seabrose 5.000.000 35.500,000 Green Hd 3.000.000 8 10.000.000 West Rand 9.000.000 8 46.500.000 KP has a total capital budget of $18,000,000 to invest in properties. a. What is the IRR of each investment? b. What is the NPV of each investment? c. Given its budget of $18,000,000, which properties should KP choose? d. Explain why the profitability Index method could not be used f KP's budget were $12,000,000 instead. Which properties should KP choose in this case