A company requires a 12% return from its investments, and is considering two alternative investment projects. The expected net cash flows from the two projects along with present value factors follow. Note: Use appropriate factor(s) from the tables provided. (PV of $1. EV of $1. PVA of $1, and FVA of $1) Project A Initial investment $ (119,800) Project 3 (130,700) Net cash flows ini Year 1 39,000 53,000 Year 2 53,000 79,000 Year 3 79,000 39,000 52:00 Calculate the net present value of each project. Project A Year 1 Year 2 Year 3 Totals Initial investment Net present value Project Z Year 1 Year 2 Year 3 Totals Initial investment Net present value Net Cash Flows Present Value of 1 at 12% Present Value of Net Cash Flows Calculate the profitability index of each project. Project A Project Z Numerator: Profitability Index Denominator: Profitability Index Profitability index < Required A Required C > Note: Use appropriate factor(s) from the tables provided. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Project A Initial investment $ (119,800) Project 2 $ (130,700) Net cash flows in: Year 1 39,000 53,000 Year 2 53,000 79,000 Year 3 79,000 39,000 Complete this question by entering your answers in the tabs below. Required A Required B Required C If the company can choose only one project, which should it choose on the basis of profitability index? If the company can choose only one project, which should it choose on the basis of profitability index?