excercise 24-10 NPV and profitablility index LO P3

6 Exercise 24-10 NPV and profitability index LO P3 Swed Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% return from its investments (PV of $1. EY $1. PVA of St. and FVA OS1) (Use appropriate factor(s) from the tables provided) Pelect afect Initial investment (1,325) (152,900) Expected net cash flows in Year 1 114.000 28,000 16.00 47,00 Year 54,295 68,000 Year 4 1,400 23, Year 5 24,00 21.00 Vear 2 o. For each alternative project compute the net present value b. For each alternative project compute the profitability index of the company can only select one broject, which should it choose? Complete this question by entering your answers in the tabs below. Required Required For each alternative project compute the net present value Project Initial investment 5 181,325 Char Based on % Year Factor Print Value 1 2 Homework 5 Chart Values are Based on: = % Cash Inflow X 1 Year PV Factor = Present Value 11 2 2 11 CR 3 = pped 4 11 5 Book Print erences Initial Investment Year Cash Inflow Project B $ 152,960 X PV Factor Present Value 1 IE 2 2 3 3 III 4 I 5 Requeda Rou Nime Ch 24. Homework od Help ve 6 For each temative project compute the net present value b. For each teative project compute the profitability index the company can only select one project which should it choose? Complete this mestion by entering your answers in the tabs below Required ed who Her For each cerniera come the profitability index if the comww can only select one project, which shoot choose rotati de Chere De Choc Nu Polistide Posty Index Project Prod the company can only bect one choose d