Isabelle Abiassi operates a popular summer camp for elementary school children. Projections for the current year are as follows:

Sales revenue $8,280,000

Operating income $733,500

Average assets $4,176,000 The camps weighted-average cost of capital is 9%, and Isabelle requires that all new investments generate a return on investment of at least 14%. The camps current tax rate is 25%.

At last weeks advisory board meeting, Isabelle told the board that she had up to $50,000 to invest in new facilities at the camp and asked them to recommend some projects. Today the boards president presented Isabelle with the following list of three potential investments to improve the camp facilities

	Playground			Swimming Pool			Gym
Incremental operating income		$ 3,766			$ 4,466			$ 2,754
Average total assets		26,900			40,600			15,300