3. The capital investment committee of What a Pool Corporation is considering two investment projects. The estimated income from operations and net cash flows from each investment follows: Flamingo Pool Float Whale Slide Income from Year Operations Net Cash Flow Income from Operations Net Cash Flow 1 61,400 135,000. 35,500 107,500 2 51,400 125,000 35,500 107,500 3 36,400 110,000 35,500 107,500 4 26,400 100,000 35,500 107,500 5 (3,600) 70,000 35,500 107,500 172,000 540,000 177,500 537,500 Wat the same Each project requires an initial investment of $365,000. Straight-line depreciation will be used and no residual value is expected. The committee has selected a rate of 12% for purposes of the net present value analysis. 1. Compute the following: a. The net present value for each investment b. The present value index for each investment. 2. Which investment would you choose and why