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Following is information on two alternative investments Beachside Resort is considering building a new pool or spa. The company requires a 10% return from its

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Following is information on two alternative investments Beachside Resort is considering building a new pool or spa. The company requires a 10% return from its investments (PV of $1. FV of $1. PVA of $1 and EVA of $1 (Use appropriate factor(s) from the tables provided) Spe Initial Investment Net cash flows in: $ (141,960) Year 1 Year 2 Year 3 Year 4 Year 5 Pool 3 (133,325) 38,000 56, 91,295 90,400 60,000 35,000 54, 56,000 34, NO 35,000 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 protitability index? Complete this question by entering your answers in the tabs below. ROGA Red Band For each investment project, compute the net present value. For each investment project, compute the net present value. Pool $ $ 183,325 Initial Investment Chart Values are Based on: % Cash Inflow X PV Factor Present Value Year Year 1 Year 2 Year 3 HIIHII W Year 4 Year 5 Initial Investment Year Cash Inflow Spa $ 141,960 PV Factor Present Value Spa $ 141,960 X PV Factor Present Value II Initial Investment Year Cash Inflow Year 1 Year 2 Year 3 Year 4 = 11 III Year 5 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. ReqA Reg B and C 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? Profitability Index Numerator Denominator: Profitability index Pool Spa If the company can only select one project, which should it choose on the basis of profitability index? & ReqA Rreth

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