Folowing is informstion on two a ternative inwestments. Beschaide Resort is considering bulding o new pool or spe. The compsny

provided.$)$

a$.$ For each investment project compute the net present vislue.

b$.$ For each Investment project compute the profitability Index.

c$.$ If the compsny can only select one project, which should it choose on the bas's of profitability index?

Complete this question by entering your answers in the tabs below.

Bo$$ A

Poop $B$ and $C$

For each imestment proyert campute the net present value.Pool Spa

Initial investment $ $(186,325)$ $ $(156,960)$

Net cash flows in:

Year $151,00044,000$

Year $250,00054,000$

Year $378,29560,000$

Year $486,40080,000$

Year $558,00025,000$

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?