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Exercise 26-12 (Static) Net present value, unequal cash flows, profitability index, and service company LO P3 Following is information on two aiternative invostments. Beachside Resort

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Exercise 26-12 (Static) Net present value, unequal cash flows, profitability index, and service company LO P3 Following is information on two aiternative invostments. Beachside Resort is considering bullding a new pool or spa. The company requires a 10% retuin from its investments. (PV of S1, EV of \$1, PVA of \$1, and EVA of \$1) Note: Use appropriate factor(s) from the tables provided. a. For each investment project compute the net present value b. For each investment project compute the profitability index. c. If the company can only select one project, which should it choose on the basis of profitability index? Complete this question by entering your answers in the tabs below. b. For each alternstive project compute the profitability index. c. If the company can only select one project, which should it choose on the basis of profitability index? For each alternative project compute the net present value. a. For each investment project compute the net present value. b. For each investment project compute the profitability index. c. If the company can only select one project, which should it choose on the basis of profitability index? Complete this question by entering your answers in the tabs below. b. For each alternative project compute the profitability index. c. If the company can only select one project, which should it choose on the basis of profitability index

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