PINK Investment evaluation PiNK is a candy shop in Munich, Germany. The owner, Sven, has 4 brothers living around Germany. They are all asking Sven if he will expand his business to their towns. Therefore, Sven is considering whether to start-up a new shop in either Kiel, Hamburg, Berlin or Flensburg. Sven considers market sizes, price of rental, access to supplies, competitors and estimates cash flows in EUR (1,000") for the 4 options. His main ambition, besides hiring one of his brothers, is to choose the project that yields highest return on the investment. His bank informs him that the cost of capital (discount rate) is 7.5%. Net CF and initial investment for the 4 options can be seen below. Year 1 Year 2 Year 4 Year 5 Year 6 30,000 25,000 Project Year 0 Kiel -120,000 Hamburg -100,000 Berlin -90,000 Flensburg -40,000 Year 3 20,000 10,000 20,000 20,000 25,000 20,000 35,000 5,000 6,000 15,000 16,000 19,000 20,000 15,000 10,000 18,000 15,000 21,000 15,000 12,000 15,000 15,000 Sven is considering the following investment evaluation criteria: payback period net present value (NPV) profitability Index (PI) Requirements: a) Help Sven to calculate the above (Payback period, NPV, PI) for each of the projects (Kiel, Hamburg, Berlin, Flensburg) b) Advise Sven which project to undertake. Use the answer to question a) to justify your recommendation, including argumentation for your