Mt. John Backster, a retired executive, desires to invest a portion of his assets in...

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Mt. John Backster, a retired executive, desires to invest a portion of his assets in rental property. He has narrowed his cholces to two apartment complexes, Windy Acres and Hilicrest Apartments. The anticipated annual cash inflows from each are as follows: Mr. Backster is likely to hold the apartment complex of his choice for about 25 years and will use this period for decision-making purposes. Elther apartment can be purchased for $160,000. Mr. Backster uses a risk adjusted ciscount rate approach when evaluating investments. His scale is related to the coefficient of variation (for other types of investments, he also considers other measures) 0. Compute the risk-adjusted net present value for Windy Acres and Hillcrest Apartments. (Round "PV Foctor" to 3 decimol ploces. Do not round intermediote coleulotions. Round the final answers to neorest whole doliar.) a. Compute the risk-adjusted net present volue for Windy Acres ond Hillrest Apartinents. (Round "PV Factor' to 3 decimol places. Do not round intermediote colculotions. Round the final answers to neorest whole dollare] b-1. Which investment should Mr. Blackster accept if the two invedments are mutualy exclusive? Hilicreif Windy Acres Both None b.2. Which investment should Mc Backster accept if the imwestments are not maitualy exclasive and no capitat rationitg is involved? Windy Actes Hilkeat Apartments Both None

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