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Clark Industries is a manufacturer of sprinklers. Clark Industries is considering the possibility of implementing 2 different investment projects if either project benefits the company.

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Clark Industries is a manufacturer of sprinklers. Clark Industries is considering the possibility of implementing 2 different investment projects if either project benefits the company. Those 2 investment projects are identified as Proj. A and Proj. B. Data on the 2 alternative investment projects being considered by Clark Industries is listed in the table below. Clark Industries requires a 8% return from its investment projects. The attached links are to the Appendix B tables in the back of the textbook. (Please make sure to use the appropriate factoris) from the tables provided.) PV of $1 EV of $1 PVA of $1 FVA of $1 Initial Investment Required to Purchase Project Assets Expected Net Cash Flows in year: 1 Proj. A $(182,325) Proj. B $(158,960) 48,000 50,000 85,295 82,400 59,000 26.000 59,000 51,000 75,000 29,000 5 Requirements A. For Clark Industries, calculate the net present value for both Proj. A and Proj. 8. B.For Clark Industries, for each alternative project calculate the profitability index. If the company can only select 1 project, which project should it choose? Proj. A or Proj. B? Complete this question by entering your answers in the tabs below. Required A Required B For each alternative project compute the net present value. Required A Required B For each alternative project compute the net present value. Project A Initial Investment $ 182,325 Chart Values are Based on: i= Year Cash Inflow PV Factor Present Value 1 2 = 3 4 5 Initial Investment Year Cash Inflow Project B $ 158,960 PV Factor X Present Value 1 2 3 5 $(182,325) $(158,960) Investment Required to Purchase Project Assets Expected Net Cash Flows in year: 1 2 3 4 5 48,080 50,000 85,295 82,400 59,000 26,000 59,000 51,000 75,000 29,089 Requirements A. For Clark Industries, calculate the net present value for both Proj. A and Proj. B. B. For Clark Industries, for each alternative project calculate the profitability index. If the company can only select 1 project, whic project should it choose? Proj. A or Proj. 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 choose? Profitability Index Choose Denominator: Choose Numerator: Profitability Index Profitability index Project A Project B If the company can only select one project, which should it choose?

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