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Could I please get assistance with this question? Following is information on two alternative investments being considered by Jolee Company. The company requires a 12%

Could I please get assistance with this question?

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Following is information on two alternative investments being considered by Jolee Company. The company requires a 12% return from its investments. (PV of $1, FV of $1, PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Project A Project B Initial investment $ ( 187 , 325 ) $ ( 150, 960) Expected net cash flows in: Year 1 37, 000 35,000 Year 2 50,000 46,000 Year 3 77, 295 55,000 Year 4 84, 400 69,000 Year 5 73,000 35,000 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?Project A Initial Investment S 187,325 Chart Values are Based on: i= 12 % Year Cash Inflow x PV Factor E Present Value 37,000 X 0.8929 33,036 No 50.000 X 0.7972 39,860 77.295 X 0.7118 55,019 84.400 X 0.6355 53,636 73,000 X 0.5674 41,420 $ 222,971 Present value of cash inflows $ 222,971 Present value of cash outflows 187,325 Net present value 35,647Project B Initial Investment 150,960 Year Cash Inflow x PV Factor E Present Value 35,000 X 0.8929 31,250 2 46,000 X 0.7972 36,671 55,000 X 0.7118 39,149 69,000 X 0.6355 43,850 35,000 X 0.5674 19,859 $ 170,779 Present value of cash inflows $ 170,779 Present value of cash outflows 150,960 Net present value 19,821Required 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: 1 Choose Denominator: Profitability Index Present value of net cash flows Initial investment = Profitability index Project A $ 222,972 $ 187,325 S 1.19 Project B $ 170,780 S 150,960 1.13 If the company can only select one project, which should it choose? Project A

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