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 SL EV of $1. PVA of $1. and EVA of $ (Use appropriate factor(s) from the tables provided.) Project A $(183,325) Project B $(142,960) Initial investment Expected net cash flows in Year 1 Year 2 Year 3 Year 4 Year 5 36.000 42.000 80,295 79.400 56.000 33,000 46,000 61.000 70,000 31.000 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? Required A Required B For each alternative project compute the net present value. Project A Initial Investment $ Chart Values are Based on: 183,325 Year Cash Inflow x PV Factor = Present Value Initial Investment Project B $ 142,960 Cash Inflow X PV Factor Year Present Value TTT Required B > 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 Denominator: Choose Numerator: = Profitability Index Profitability index Project A Project B If the company can only select one project, which should it choose?