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elena_browser=0&launchUrl=https%253A%252F%252Flearn.liberty.edu%252Fwebapps%252Fportal%252Fframeset.jsp%253Ftab_tab_group_id Homework A Saved Following is information on two alternative investments being considered by Jolee Company. The company requires a 8% return from its investments.
elena_browser=0&launchUrl=https%253A%252F%252Flearn.liberty.edu%252Fwebapps%252Fportal%252Fframeset.jsp%253Ftab_tab_group_id Homework A Saved Following is information on two alternative investments being considered by Jolee Company. The company requires a 8% 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 $(176,325) Project B $(148,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 43,000 56,990 79,295 91,400 56,000 39,000 56,000 52,080 71,000 21,890 t 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? int Complete this question by entering your answers in the tabs below. Required A Required B For each alternative project compute the net present value. Project A Initial Investment 5 176.325 Chart Values are Based on: % Year Cash Inflow PV Factor Present Value 1 2 3 4 5 MC Grave Saved 8 For each alternative project compute the net present value 2. points Project A Initial Investment S 176,325 Chart Values are Based on: 1- % Year Cash Inflow X PV Factor 1 Present Value eBook 2 3 00 Hint 4 5 Print Initial Investment Year Cash Inflow Project B 148,960 PV Factor - Present Value X 2 = 4 5 Required B > ME Graw HII Factor Company is Connect - Google Year 5 56,000 71,000 21,000 eBook 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 shou Hint Complete this question by entering your answers in the tabs below. Print 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 1 Choose Denominator: Choose Numerator: Profitability Index Profitability index = 0 Project A Project B If the company can only select one project, which should it choose? 0
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