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8 Following is information on two alternative investments being considered by Jolee Company. The company requires a 8% return from its investments. (PV of $1,
8 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 Project Initial investment Expected net cash flows in year: (175, 325) (140,960) points 52,000 41,000 88,295 80,400 59,000 37,000 47,000 68,000 70,000 24,000 eBook 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? Hint Print Complete this question by entering your answers in the tabs below Required A Required B For each alternative project compute the net present value Project A 175,325 Initial Investment Chart Values are Based on: Year Cash Inflow x PV Factor Present Value 2 Project A $175,325 Initial Investment Chart Values are Based on: YearCash Inflow x PV FactorPresent Value 2 Book 4 Hint Print Project B $140,960 nitial Investment Year Cash Inflow xPV Factor Present Value 4 Project B 140,960 Initial Investment YearCash Inflowx PV FactorPresent Value 2 4 Required A Required B> 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 should it hooe... Profitability Index Choose Denominator:Profitability Index Profitability inde:x Choose Numerator: Project A Project B If the company can only select one project, which should it choose? Required A Required B
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