Topic 6 Capital Budgeting 1 Kevin owns a matchmaking business called Kevin Love. Kevin Love is based in Minnesota. where he runs frequent matchmaking events around the state and has accumulated a solid reputation. He is particularly renowned for helping out with rebounding. One day, Kevin's mate James approaches him and suggests he consider taking his talents to Cleveland and does business there for the next four years. As Kevin's lease has recently expired, it will cost him $60,000 payable immediately to continue his business for the next four years regardless of whether he chooses to remain in Minnesota or move to Cleveland. The anticipated cash ows expected from Minnesota and Cleveland are as follows: a) Purely based on the payback technique, what advice would you give to Kevin Love? b) You believe that you are smarter than Kevin, so you decide to re-evaluate his decision using the NPV technique. Assuming a cost of capital of 12% pa. what advice do you give him