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ased on the NPV, Grady should pick (Sports or restaurant) project?What is the adjusted NPV equivalent annual annuity of the restaurant project?What is the adjusted NPV equivalent annual annuity of the sports facility?Based on the adjusted NPV, Grady should pick (Sports or restaurant) project?Does the decision change?NFV unequal lives. Grady Enterprises is looking at two project opportunities for a parcel of land the company currently owns. The first project is a restaurant, and thesecond project is a sports facility. The projected cash flow of the restaurant is an initial cost of $1 ,600,000 with cash flows over the next six years of $190,000 (yearone), $220,000 (year two), $260,000 (years three through five), and $1,730,000 (year six), at which point Grady plans to sell the restaurant. The sports facility has thefollowing cash flows: an initial cost of $2,300,000 with cash flows over the next four years of $450,000 (years one through three) and $2,560,000 (year four), at whichpoint Grady plans to sell the facility. If the appropriate discount rate for the restaurant is 11.0% and the appropriate discount rate for the sports facility is 11.5%, use the NPV to determine which project Grady should choose for the parcel of land. Adjust the NPV for unequal lives with the equivalent annual annuity. Does the decisionchange? If the appropriate discount rate for the restaurant is 11.0%, what is the NPV of the restaurant project? $D (Round to the nearest cent.)

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