Exercise 11-10 NPV and profitability index LO P3 Following is information on two altemative investments being considered by Jolee Company. The company requires a 10 % 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 $(179,325) Project B $(159,960) Initial investment Expected net cash flows in year: 40,000 53,000 81,295 83,400 59,000 31,000 59,000 50,0e0 81,000 20,000 4 5 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. Required A Required B Required A Required B For each alternative project compute the net present value. Project A Initial Investment 179,325 Chart Values are Based on: Year Cash Inflow PV Factor X Present Value 1 2 3 4 5 Project B Initial Investment S 159.960 Year Cash Inflow PV Factor X Present Value 1 Prey 1 of 1 III II II Project B 159,960 Initial Investment Year Cash Inflow PV Factor X Present Value 1 2 3 - ces 5 Required B > II I 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 Numerator: Choose Denominator Profitability Index Profitability index Project A Project B If the company can only select one project, which should it choose?