A company has a decision to make between two investment alternatives. The company requires a 10% return on investment. Predicted data is provided below: 
The present value of an annuity for 6 years at 10% is 4.3553. This company uses straight-line depreciation.
Required:
(a) Calculate the net present value for each investment.
(b) Calculate the profitability index for each investment.
(c) Which investment should this company select? Explain.
Definitions:
Area
A quantity expressing the two-dimensional size or extent of a shape or surface, typically measured in square units.
Variance
A measure of dispersion in a set of data points, calculated by taking the average of the squared differences from the mean.
Standard Deviation
A statistic that quantifies the dispersion or variability of a dataset, measuring the average distance between each data point and the mean.
Z-score
A quantitative measure that demonstrates the correlation of a specific value to the mean of a dataset, identifying its separation from the mean by counting the standard deviations.
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