Question: Exercise 26-12 Net present value, unequal cash flows, profitability index, and service company P3 Following is information on two alternative investments, Beachside Resort is considering
Exercise 26-12 Net present value, unequal cash flows, profitability index, and service company 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. For each investment project, compute (a) bet present value and (b) profitability index. (c) If the company can only select one project, which should it choose on the basis of profitability index? Pool nament Not show your Year 2 Year Year $160.000 40.000 56.000 80.296 90.400 G5.000 Spe 105.000) 32.000 50.000 66.000 72.000 24.000
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