The owner of Zivanov's Pancake House is considering an expansion of the business. He has identified two alternatives, as follows: . Build a new restaurant near the mall . 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 6 percent after-tax discount rate Net After-Tax Cash Inflows* Cash Outflow: Investment Proposal Mall restaurant Downtown Time O $439,000 $40,000 $40,000 Years 1-10 Years 11-20 167,000 25,000 restaurant *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 alternative restaurant site. (Round your final answers to the nearest dollar.) Net Present Value Mall restaurant Downtown restaurant 2. Compute the profitability index for each alternative. (Round your answers to 2 decimal places.) Profitablility Index Mall restaurant Downtown restaurant 3. How do the two sites rank in terms of NPV and the profitability index? NPV Profitablility Index Mall restaurant Downtown restaurant