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1 Exercise 11-10 NPV and profitability index LO P3 Following is fortion on two steberg considered by Joiee Company The company roles 10 tam omnem

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1 Exercise 11-10 NPV and profitability index LO P3 Following is fortion on two steberg considered by Joiee Company The company roles 10 tam omnem PVCISI VA Cond EVA E51) Use appropriate factors from the tables provided) a. For stive proyect comment For each onemove project compare the promeximecorary can only seczone project which should choo Complete this westly you with the below Horst aan het 1900 4 oto 12000 3 1000 54500 Exercise 11-10 NPV and profitability index LO P3 Following is Information on two alternative Investments being considered by Jolee Company. 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.) Project A $(184,325) Project 3 $(155, 968) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Years 38,888 41, see 75,295 91, 4ee 73, 37,80 61,888 64.ee 56. Bee 29, eee a. For each alternative project compute the net present value b. For each alternative project compute the profitability Index. If the company can only select one project, which should it choose? Complete this question by entering your answers in the tabs below. Required A Required B For each alternative project compute the profitability index. If the company can only select one project, which sh choose? Profitability Index Choose Numerator: 1 Choose Denominator: Present value of net cash flows Initial investment Project A 5 184,325 Project B 5 165,900 1 the company can only select one project, which should it choose? Profitability Index Profitability index 0.00 0.00

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