The historic Ashbrook Hotel is located on 120 acres in the beautiful hills of North Carolina. The hotel's management is looking to increase foot-traffic by adding some new amenities. The big project that management is considering is to either build a theatre or spa in some unused space on the basement floor. ' Theatre Spa Initial Cost $ 250,000 $ 327,000 $ $ $ $ $ $ Estimated useful life 15 years 10 years Management's required rate of return on its investments is 10%. The company uses the straight-line method of depreciation. Help management decide which capital asset should be selected by computing the following items for both projects. Required: 1.) What is the payback period for each capital project? Show your work. 2.) What is the accounting rate of return for each capital project? Show your work. 3.) What is the net present value for each capital project? Show your work