10)

Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% return from its investments. (FV of $1,PV of $1,FVA of $1andPVA of $1).(Use appropriate factor(s) from the tables provided.)

	Project A	Project B
Initial investment		$	(186,325	)			$	(140,960	)
Expected net cash flows in year:
1			45,000					31,000
2			45,000					49,000
3			84,295					57,000
4			88,400					67,000
5			59,000					36,000

1(a)	For each alternative project compute the net present value.

Project A initial investment Chart values are based on: i= % year cash inflow 186325 present pv factor value 1 2 3 4 5 initial investment Project B 140960 year cash inflow 1 2 3 4 5 present pv factor value