1 Following is information on two alternative investments being considered by Jolee Company. The company requires a 8% 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 $ (190,325) Project B $ (149,960) 8 01:55:56 Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 46,000 51,000 75,295 95,400 66,000 42,000 55,000 56,000 82,000 23,000 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? Required A Required B For each alternative project compute the net present value. Project A Initial Investment $ 190,325 Chart Values are Based on: % Year Cash Inflow x PV Factor Present Value 1 2 3 4 5 Project B $ 149,960 Initial Investment Year Cash Inflow X PV Factor Present Value 1 2 3 = 4 5 = Required A Required B For each alternative project compute the profitability index. If the company can only select one project, which should it choose? Profitability Index Choose Numerator: 1 Choose Denominator: Profitability Index Profitability index 1 Project A Project B If the company can only select one project, which should it choose?