Problem 16-53 Ranking Investment Proposals; NPV versus Protability Index; Taxes (Section 2) (L0 16-4, 16-6. 16-7] The owner of Waco Waffle House Is considering an expansion of the business. He has identied two alternatives. as follows: - Build a new restaurant near the mall. e Buy and renovate an old building downtown for the new restaurant. The projected cash flows from these two alternatives are shown below. The owner of the restaurant uses a 18 percent aftertax discount rate. Investment Cash Outflow: Net After-Tax Cash Inm' Proposal Tile 9 Years 1-19 Years 11-26 Mall restaurant $353,099 $71,806 $71,999 Downtown restaurant 133,906 44,569 - " Includes alter-tax cash flows from all sources. Including incremental revenue. Incremental expenses. and depreciation tax shield. Use ow for your reference. {Use appropriate factorial from the tables provided.) Required: 1. Compute the net present value of each alternative restaurant site. 2. Compute the protability Index for each alternative. 3. How do the two sites rank in terms of NPV and the protability index? Required 1 Required 2 Required 3 Compute the net present value of each alternative restaurant site. (Round your final answers to the nearest dollar.) Net Present Value Mall restaurant Downtown restaurantRequired 1 Required 2 Required 3 Compute the profitability index for each alternative. (Round your answers to 2 decimal places.) Profitablility Index Mall restaurant Downtown restaurantRequired 1 Required 2 Required 3 How do the two sites rank in terms of NPV and the profitability index? NPV Profitablility Index Mall restaurant Rank 2 Downtown restaurant Rank 1