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please answer the required parts to receive full credit. required one: required two: Exercise 11-12 (Algo) Net present value, unequal cash flows, profitability Index, and
please answer the required parts to receive full credit.
required one:
required two:
Exercise 11-12 (Algo) Net present value, unequal cash flows, profitability Index, and service company LO P3 Following is information on two alternative investments Beachside Resort is considering building a new pool or spa. The company requires a 6% return from its Investments. (PV of $. EV of $3 PVA of $3 and EVA of $1) Note: Use appropriate factor(s) from the tables provided. Initial investeent Net cash 10WS In $ (177.325) (152,960) 38,000 37,000 Year 2 50,000 56,000 Year 3 801295 58,000 Year 4 92,400 56,000 Years 68,000 38,000 a. For each Investment project compute the net present value. b. For each Investment project compute the profitablity 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. RA Req Band C For each investment project compute the net present value, Pool Net Cash Flows x Present Value Present Value of Net Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 Totals S Spa Net Cash Flows Present Value Present Value of Net Cash Flows Year 1 Year 2 Year 3 " # Year 4 Year 5 Totals $ Req B and C >
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