Exercise 24-12 (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 10% 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.) Initial investment Net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 Pool $ (172,325) 44,000 47,000 89, 295 92,400 57,000 Spa $ (151, 960) 30,000 51, 000 67,000 68,000 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? Complete this question by entering your answers in the tabs below.

Exercise 24-12 (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 compary requires a 10\% return from its investments. (PV of S1. FV of \$1. PVA of \$1, and FVA of \$1) (Use appropriate factor(s) from the tables provided.) 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? Complete this question by entering your answers in the tabs below. b. For each investment project compute the proftability index, c. If the company can only select one project, which should it choose on the basis of profitability index