Question 5 (35 Marks: The owner of Saskatoon Corporation has asked managers to submit capital project proposals for potential new stores. One option is to open the store in Edmonton, Alberta. The other option is to open the store in Yellowknife. North West Territories. The company does not have the financial capitability to do both projects and therefore only one of the two stores will move forward. The company expects a minimum return of 16% and requires a minimum payback period of 5 years. Ignore Taxes. Edmonton Yellowknife Initial investment for construction 800000 1000000 Initial investment for Equipment 195000 140000 Working capital required 144000 165000 Net Annual Cash Inows Over Expected Life 200000 220000 Expected life 20 years 30 years Salvage value of store assets at end of expected life 0 100000 Maintenance of equipment in year 10 44000 26000 Maintenance of equipment in year 20 0 18000 Release of working capital at end of expected life 144000 165000 a] Which store would you open using the l'qlP'i.I method? b] What store would you open using the Protability Index? c] What store would you open using the Payback Method? d] Taking into account all three methods. what overall recommendation would you make to the owner? Why