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 FVA of $1) (Use appropriate factor(s) from the tables provided.)

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 FVA of $1) (Use appropriate factor(s) from the tables provided.) Pool $ (160,000) Spa $ (105,000) Initial investment Net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 40,000 56,000 80,295 90,400 65,000 32,000 50,000 66,000 72,000 24,000 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 profitability index? For each alternative project, compute the net present value. Pool 160,000 Initial Investment $ Chart Values are Based on: i = % Year Cash Inflow 1 PV Factor = Present Value N = 3 4 5 II Initial Investment Year Cash Inflow $ Spa 105,000 PV Factor = Present Value 1 II 2 3 = 4 5 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? Profitability Index Numerator: 1 Denominator: / Profitability index Pool Spa If the company can only select one project, which should it choose on the basis of profitability index