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The owner of Waco Waffe House is considering an expansion of the business. He has Identified two altematives, as follows: - Bulld a new restaurant

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The owner of Waco Waffe House is considering an expansion of the business. He has Identified two altematives, as follows: - Bulld a new restaurant near the mall. - Buy and renovate an old bullding downtown for the new restaurant. The projected cash flows from these two alternatives are shown below. The owner of the restaurant uses a 16 percent after-tak discount rate. -Includes after-tax cash flows from all sources, including incremental revenue, incremental expenses, and depreciation tax shield. Use Appendix. A for your reference. (Use appropriate factor(s) from the tables provided.) Required: 1. Compute the net present value of each altemative restaurant site. 2. Compute the profitability index for each altemative. 3. How do the two sites rank in terms of NPV and the profitability index? Complete this question by entering your answers in the tabs below. Use Appendix A for your reference. (Use appropriate factor(s) from the tables Required: 1. Compute the net present value of each alternative restaurant site. 2. Compute the profitability index for each alternative. 3. How do the two sites rank in terms of NPV and the profitability index? Complete this question by entering your answers in the tabs below. Compute the net present value of each alternative restaurant site. (Round your final Required: 1. Compute the net present value of each alternative restaurant site. 2. Compute the profitability index for each alternative. 3. How do the two sites rank in terms of NPV and the profitability index? Complete this question by entering your answers in the tabs below. Compute the profitability index for each alternative. (Round your answers to 2 decimal places.) Required: 1. Compute the net present value of each alternative restaurant site. 2. Compute the profitability index for each alternative. 3. How do the two sites rank in terms of NPV and the profitability index? Complete this question by entering your answers in the tabs below. How do the two sites rank in terms of NPV and the profitability index? Future Value and Present Value Tables Table I Table Il Future Vithe of a Senes of $1.00 Cash flows (Ordenary Anmuly) r(1+t)1 Table III Hresent Value of 51.0011.+.+1n1 Toble N Present Vatue of Senes of 5100 Cash Fown r1(1(1+r)1)

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