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 10% return from its investments. (PV of $1. FV of $1. PVA of S1, and FVA of S1) (Use appropriate factor(s) from the tables provided.) Project A Project B Initial investment $(185,325) $(149,960) Expected net cash flows in: Year 1 38,000 25,000 Year 2 46,000 58,000 Year 3 88,295 57,000 Year 4 80,480 76,000 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? 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 For each alternative project compute the net present value. Project A Initial Investment $ 185,325 Chart Values are Based on: % Year Cash Inflow * PV Factor - 1 Present Value 2 3 4 ### 5 1 2. 3 = 4 1111 5 Initial Investment Year Project B $ 149,960 Cash Inflow X PV Factor Present Value 1 2 11 3 11 4 = 5