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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					Project B
Initial investment		$	(182,325	)			$	(145,960	)
Expected net cash flows in year:
1			39,000					32,000
2			59,000					43,000
3			78,295					61,000
4			86,400					73,000
5			63,000					38,000

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 $182,325 Initial Investment Chart Values are Based on: YearCash Inflow x PV FactorPresent Value 4 Project B Initial Investment 145,960 YearCash Inflow x PV FactorPresent Value 4 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: Choose Denominator:Profitability Index Profitability index Project A Project B If the company can only select one project, which should it choose