Following is information on two alternative investments. Beachside Resort is considering building a new pool or spa. The company requires a 8% 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	Spa
Initial investment	$ (189,325)	$ (147,960)
Net cash flows in:
Year 1	36,000	32,000
Year 2	44,000	61,000
Year 3	75,295	67,000
Year 4	83,400	79,000
Year 5	67,000	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 profitability index?