Use the spreadsheet titled “Decision Rules” in your exam tem…
Use the spreadsheet titled “Decision Rules” in your exam template to complete this problem. You are trying to decide which assisted living facility you should buy based upon cash flows as follows (in millions): Project CF 0 CF 1 CF 2 CF 3 CF 4 Death Valley -$30 $11 $2 $4 $45 ReTire Flats -$15 $0 $2 $0 $40 Pass Away Lots -$10 $5 $4 $5 $6 Your cost of capital is 16%. In the Excel Template, use the tab called “Decision Rules”. Calculate the NPV, IRR, and Profitability Index for each project. You have a budget constraint of $50million. Which project(s) should you choose and (briefly) why?