Windy Acres Hillcrest Apartments

Yearly Aftertax

Cash Inflow Probability Yearly Aftertax

Cash Inflow Probability

$50,0000\mathrm{.}155,0000\mathrm{.}2$

$55,0000\mathrm{.}260,0000\mathrm{.}3$

$70,0000\mathrm{.}470,0000\mathrm{.}4$

$85,0000\mathrm{.}280,0000\mathrm{.}1$

$90,0000\mathrm{.}1$

Mr$.$ Backster is likely to hold the apartment complex of his choice for about $15$ years and will use this period for decision$-$making purposes. Either apartment can be purchased for $$150,000.$ Mr$.$ Backster uses a risk$-$adjusted discount rate approach when evaluating investments. His scale is related to the coefficient of variation $($for other types of investments, he also considers other measures$).$

Coefficient of Variation Discount Rate

$00\mathrm{.}354\%$

$0\mathrm{.}350\mathrm{.}408($cost of capital$)$

$0\mathrm{.}400\mathrm{.}5012$

Over $0\mathrm{.}50$ not considered

a$.$ Compute the risk$-$adjusted net present value for Windy Acres and Hillcrest Apartments. $($Round $"$PV Factor" to $3$ decimal places. Do not round intermediate calculations. Round the final answers to nearest whole dollar.$)$