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 $8000001000000$

Initial investment for Equipment $195000140000$

Working capital required $144000165000$

Net Annual Cash Inflows Over Expected Life $200000220000$

Expected life $20$ years $30$ years

Salvage value of store assets at end of expected life $0100000$

Maintenance of equipment in year $104400026000$

Maintenance of equipment in year $20018000$

Release of working capital at end of expected life $144000165000$

Which store would you open using the NPV method?