Exercise 11-10 NPV and profitability index LO P3 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 $(184,325) Project B $(143,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 55,000 57,000 85,295 89,400 61,000 39,000 54,000 50,000 75,000 24,000 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? Complete this question by entering your answers in the tabs below. = Present Value Project A Initial Investment $ 184,325 Chart Values are Based on: 6 % Year Cash Inflow X PV Factor 1 55,000 57,000 85,295 x 89,400 X 61,000 3 4 Initial Investment Year Cash Inflow 1 Project B $ 143,960 X PV Factor = Present Value 57,000 X 1111 85,295 89,400 x 61,000 Initial Investment Year Cash Inflow Project B $ 143,960 X PV Factor = Present Value