Ch 11 Ex 11-10 A Saved Help Save & Exit Submit Check my work Exercise 11-10 NPV and profitability index LO P3 20 points Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% 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 $ (186,325) Project B $ (151,960) eBook Hint Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 Ask 36,000 43,000 91,295 90,400 54,000 35,000 53,000 58,000 66,000 36,000 Print References 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? Complete this question by entering your answers in the tabs below. Ch 11 Ex 11-10 Saved Help Save & Exit Submit Check my work 1 Required A Required B For each alternative project compute the net present value. 20 points Project A Initial Investment $ 186,325 Chart Values are Based on: eBook 1 = Hint Year PV Factor = Present Value Ask 2 Print Cash Inflow X 36,000 X 43,000 X 91,295 x 90,400 X 54,000 References L Ch 11 Ex 11-10 A Saved Help Save & Exit Submit Check my work Project B Initial Investment Year Cash Inflow | $ X 151,960| PV Factor = Present Value 20 points eBook 5 Hint Ask Print References Required A Required B > Ch 11 Ex 11-10A Saved Help Save & Exit Submit Check my work Complete this question by entering your answers in the tabs below. 20 Required A Required B points For each alternative project compute the profitability index. If the company can only select one project, which should it choose? eBook Hint = Ask Profitability Index Profitability Index Print Profitability Index Choose Numerator: Choose Denominator: Annual after-tax net income i Project A Project B If the company can only select one project, which should it choose? References